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Crypto broker Genesis Trading announced that the firm’s CEO Michael Moro will be immediately stepping down from his role.
Derar Islim, Genesis’ chief operating officer, will take over as interim CEO while the firm is seeking a permanent replacement.
“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,” Michael Moro, who will continue to advise the company through the transition, said in a statement.
Genesis joins crypto cuts
The firm will also cut 20% of its 260-person workforce to reduce costs, per Bloomberg.
“The changes and investments we’re announcing today affirm our commitment to operational excellence as we continue to expand our services to meet the needs of our clients today and into the future,” said Islim.
The leadership reshuffle also saw Genesis hire several key executives, who, as the company hopes, will “further strengthen its governance and position the firm for the future.”
These include chief risk officer Michael Patchen, chief compliance officer Michael Patterson, and chief technology officer Matthew Johnson, who recently joined Genesis.
Chief financial officer Alice Chan and chief legal officer Arianna Pretto-Sakmann join the expanded leadership team “focused on strengthening the company’s overall risk management.”
Genesis Trading and the crypto crumble
Genesis Trading, a wholly-owned subsidiary of Digital Currency Group, is one of the largest crypto brokerages for global institutional investors. It has been operating since 2013, when it launched the industry’s first Bitcoin OTC.
Last week, the New York-based company reported that it originated more than $40 billion in new loans in Q2 2022, representing a 9% drop from the first quarter.
Genesis had $4.9 billion in active loans at the end of June while reporting over $17 billion in spot volume trading during the second quarter.
The firm, however, admitted that “it was not immune to the market drop and the damage to overall sentiment.”
Last month, it was also revealed that Genesis was the biggest creditor of the now-insolvent crypto fund Three Arrows Capital with a whopping $2.36 billion owed to the firm.
Digital Currency Group assumed some liabilities to ensure that Genesis had the capital to operate for the foreseeable future, while also filing a $1.2 billion claim against Three Arrows.