In a workforce and leadership shakeup, crypto brokerage Genesis is cutting 20% of its staff as CEO Michael Moro stepped down and Chief Operating Officer Derar Islim was named interim CEO while the company searches for a new leader.
The changes being rolled out “affirm our commitment to operational excellence,” Islim said in a press release on Wednesday (Aug. 17). The staff reduction is to “align our organization to our strategic priorities,” a spokesman said in an emailed statement to PYMNTS.
Launched in 2013 and headquartered in New York, New York, Genesis was the biggest creditor caught in the tangled financial net that followed the collapse of Three Arrows (3AC) after the fund failed to meet margin calls.
Genesis parent company Digital Currency Group (DCG) filed a $1.2 billion claim against 3AC, which is in the process of being liquidated, according to multiple reports in July.
“As we’ve stated publicly, Genesis had loan exposure to Three Arrows Capital. Our parent company DCG assumed the liability related to losses on these loans, leaving our balance sheet healthy so Genesis could continue to be a source of strength for our clients,” Genesis said in a report on second-quarter market observations.
Moro will advise the firm through the transition as a search for his replacement ensues, according to the press release.
“Since we launched the first OTC Bitcoin trading desk in 2013, sophisticated investors have come to Genesis to provide liquidity, lending, and custody services for their digital assets,” Moro said. “It has been an honor to lead Genesis for nearly a decade and I look forward to supporting the company’s next phase of growth.”
Other key leadership hires include Chief Financial Officer Alice Chan, Chief Legal Officer Arianna Pretto-Sakmann, Chief Risk Officer Michael Patchen, Chief Compliance Officer Michael Patterson and Chief Technology Officer Matthew Johnson.
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