Genesis CEO Michael Moro is stepping down as part of a leadership reshuffle following the Crypto brokerage’s exposure to bankrupt hedge fund Three Arrows Capital and a general market downturn.
In addition, the New York-based company announced Wednesday that it will lay off 20% of its 260-person workforce to cut costs.
Genesis said in a statement that Chief Operating Officer Derar Islim will serve as interim CEO while the company searches for a permanent replacement. Moro will guide the firm during the transition. According to the company, Tom Conheeney, formerly president of SAC Capital and Point72 Asset Management, will join as a board member and senior adviser. It also announced the addition of risk, compliance, and technology executives.
The changes and investments we are declaring today confirm our commitment to operational excellence as we carry on to expand our services to meet the needs of our clients today and in the future, Islim said in a statement.
Genesis, a subsidiary of Crypto conglomerate Digital Currency Group, was the fund’s largest creditor embroiled in the Three Arrows collapse after it failed to meet margin calls. Its parent assumed some liabilities and filed a $1.2 billion claim against the insolvent Three Arrows.
Genesis is one of the largest and most well-known digital asset lenders. The company reported last week that new loan origination in the second quarter fell 9% from the previous period to around $40 billion. According to CoinMarketCap, the value of Cryptocurrency has dropped by half this year to around $1.1 trillion.
Since 2013, when we introduced the first OTC Bitcoin trading desk, refined investors have approached Genesis for liquidity, lending, and custody services for their digital assets, Moro uttered in a statement. It has been a privilege to lead Genesis for nearly a decade, and I look forward to assisting the company’s next stage of growth.
