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Genesis Trading today announced massive cuts to its workforce in an effort to reduce costs at the ailing institutional crypto firm.
The company did not provide precise numbers, but sources close to the matter confirmed to Decrypt that Genesis has laid off 30% of its staff.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” a Genesis spokesperson told Decrypt via email.
“These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work to identify the best outcome for Genesis’s business, clients and employees for the long-term.”
Genesis has been facing severe financial challenges for months now since it halted withdrawals in November after the collapse of FTX. The company revealed at the time that it had $175 million in exposure to FTX.
Now Gemini, the New York-based crypto exchange founded by the Winklevoss twins, is pressuring Genesis to return the funds it had been funneling to Genesis for investment through its Gemini Earn program.
Genesis owes Gemini a staggering $900 million, and Gemini believes Genesis parent company DCG is to blame. On Monday, Cameron Winklevoss wrote an open letter to DCG CEO Barry Silbert accusing him of “bad faith stall tactics” and claimed that a $1.7 billion loan from Genesis to DCG was the source of the holdup. Silbert denied the accusations.
Genesis Interim CEO Derar Islim wrote Wednesday that while “this is a very complex process that will take some additional time,” Islim believes a solution is on the horizon.
It appears that solution includes shaving down staff numbers. In his Wednesday letter, Islim said that Genesis’ efforts will include “reducing costs and driving efficiencies in all our business lines.”