The New York firm, a name in institutional crypto lending and prime broking, has also announced a 20% staff reduction beginning August 17, 2022.

This follows the company's announcement that it lent $40 billion in the second quarter, a 9% decrease from the first quarter, as institutional borrowing interest cooled amid a crypto market downturn. At press time, the crypto market had fallen from a peak of around $3 trillion to around $1.12 trillion. Genesis' derivatives trading fell 4% from the first quarter.

Consistent dedication 

For the time being, the Chief Operating Officer will serve as CEO. At the same time, the company is looking for a permanent replacement for Moro, who will serve as an advisor during the hiring process. Tom Conheeny will join the Genesis board and executives along with risk, compliance, and technology.

Derar Islim, Chief Operating Officer, stated that the board reorganization and staff reductions were part of the company's ongoing commitment to operational excellence.

Moro, a former Citi executive, stated that it had been an honor to lead the company for nearly a decade, beginning with establishing a bitcoin trading desk in 2013. He oversaw the acquisitions of Qu Capital, a quant trading firm, and Vo1t, a digital currency custodian. It also opened offices in London, New York, and Singapore.

DCG assumed its liabilities

In July 2022, Genesis disclosed its exposure to 3AC and sold the hedge fund's collateral after it failed to react to a margin call. The company had demanded an average margin of more than 80% from the Singaporean hedge fund, which had recently filed for bankruptcy and was ordered by a British Virgin Islands court to liquidate.

Digital Currency Group assumed some of the lender's liabilities for it to continue operations. The platform lends to cryptocurrency firms that want to introduce short positions on digital assets or lock up crypto to earn a yield. It joins Coinbase, Crypto.com, Bitpanda, and Blockchain.com in reducing staff as user engagement and revenue decline.

Deribit, a company specializing in crypto derivatives, a product currently unavailable on US-based exchanges, was one of the creditors supporting the 3AC liquidation. Blockchain.com has also contributed.

Posted 
Aug 18, 2022
 in 
Crypto News
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