Digital asset brokerage Genesis is shaking up its executive lineup with company CEO Michael Moro confirming that he is stepping down, amid company-wide layoffs affecting 20% of staff.
Genesis launched over-the-counter cryptocurrency trading in 2013 and has been long seen as a fixture in the industry.
The latest downturn in the cryptocurrency industry seemed not to affect Genesis at first, with the company’s loan originations surging to $131bn in 2021. This prompted rapid expansion of the existing workforce, up 22% to 170.
By mid-2022 the company rapidly added more cryptocurrency experts and by June this year, it had 260 employees.
Now, 52 of these will have to go, owing to the steep downturn in the Bitcoin and Ethereum cryptocurrency markets, the fall-from-grace of Three Arrows Capital and the bankruptcies of both Celsius Network and Voyager Digital.
These events have occurred at the same time, reducing Genesis’ ability to limit the impact and forcing the company to experience the repercussions in the second-quarter bottom line.
“Genesis was not immune to the market drop and the damage to overall sentiment,” the company said in its assessment of the situation.
Exposure to 3AC did not help, as Genesis had loan exposure to the fund. Some may see Moro’s resignation as a rare assumption of responsibility that is set to establish a new standard in the cryptocurrency industry.
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