Genesis Trading, a New York-based digital broker, has reduced its headcount by 20 percent as it names chief operating officer Derar Islim as the interim head of the platform, as per a report by Reuters. Islim will replace Michael Moro. The ongoing ‘crypto winter’ has not only had an adverse effect on the prices and trading volumes of crypto coins, but has also led to massive layoffs across the board for most cryptocurrency platforms across the globe.
Prior to the recent layoffs, Genesis reportedly had nearly 260 employees. The platform said in July that it had exposure to the embattled Three Arrows Capital, popularly known as 3AC, which had filed for bankruptcy last month to protect its assets from creditors. This led to a domino effect which lead to the eventual bankruptcy filing of yet another crypto lending platform, Voyager Digital, which issued a default notice to 3AC. The loan default, along with the current volatility of the overall crypto market has been cited as the reason behind the bankruptcy by Voyager CEO Stephen Ehrlich.
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Genesis, however, earlier said that it had mitigated its losses after 3AC failed to meet a margin call, as per now former CEO Moro, who had added that Genesis’ parent Digital Currency Group had assumed some of the broker platform’s liabilities.
The company has also named Tom Conheeney as a senior advisor, who is the president of former hedge fund SAC Capital and its successor Point72 Asset Management.
Moro will continue to advise Genesis through its transition as the platform said it had begun looking for a full-time CEO.
(With inputs from agencies)
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