Genesis CEO Michael Moro Steps Down Amid 20% Staff Cuts And 3AC Losses

Summary:

  • Michael Moro has left his role as the CEO of beleaguered crypto broker Genesis.
  • Moro’s exit was announced alongside a 20% cut in the company’s workforce.
  • Some 52 employees out of 260 staff are expected to leave Genesis starting Wednesday.
  • Chief Operating Officer Derar Islim was appointed interim CEO as part of an ongoing restructuring plan.
  • The crypto broker previously disclosed its exposure to Three Arrows Capital and filed a $1.2 billion claim against the crypto hedge fund. 

Crypto brokerage service Genesis announced the exit of CEO Michael Moro as the firm attempts to restructure and recover following exposure to troubled crypto hedge fund Three Arrows Capital and a significant downturn in the digital asset market.

Moro’s exit was accompanied by a cut in the company’s employee count, per an official press statement on Wednesday. At press time, the crypto broker boasts a workforce of 260 employees. About 52 members of staff, 20% of the total workforce,  are expected to leave the company starting today. 

Genesis trading launched as a crypto broker under the Digital Currency Group in 2013. The service is credited with opening the first ever over-the-counter bitcoin trading department in the United States.

In addition to Moro’s exit and staff cuts, Genesis also announced new appointments in key areas of the company. Chief Operating Officer Derar Islim has assumed the role of interim CEO in the meantime. 

The crypto broker also appointed financial services expert Tom Conheeney as a senior advisor and board member.

Genesis Filed A $1.2 Billion Claim Against 3AC

As contagion spread through the crypto market following Terra’s crash, Genesis disclosed its exposure to troubled crypto hedge fund Three Arrows Capital. After a liquidation court order was issued by a British Virgin Islands Court, Genesis joined a list of claimants seeking redress from 3AC.

EthereumWorldNews reported that the crypto broker filed claims worth $1.2 billion. At press time, 3AC’s liquidation proceedings are underway and led by financial advisory firm Teneo Restructuring.

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