Genesis Global Trading Inc. has laid off more than 60 employees in its latest round of job cuts, amounting to roughly 30% of the troubled crypto-brokerage’s workforce.
(Bloomberg) — Genesis Global Trading Inc. has laid off more than 60 employees in its latest round of job cuts, amounting to roughly 30% of the troubled crypto-brokerage’s workforce.
The dismissals follow a separate round of job eliminations last year that saw a number of key leadership departures, and signal further upheaval at the New York-based firm amid an extended rout in the digital-assets market. The company now has 145 employees remaining, according to a Genesis spokesperson.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” said a Genesis spokesperson in an emailed statement. “These measures are part of our ongoing efforts to move our business forward.”
Genesis has been dealing with blows from multiple fronts. The sudden collapse of FTX, one of the world’s largest crypto exchanges, toward the end of 2022 roiled the digital-asset market and triggered a liquidity crunch at Genesis. The company has been trying to raise fresh cash for its lending unit, though some investors approached for the lifeline have balked at the interconnectedness between Genesis and other related entities that are part of Barry Silbert’s Digital Currency Group, Bloomberg News reported recently.
Genesis told clients in an update this week that it needs more time to come up with a solution for the troubles at its lending unit. It warned in November that it may have to file for bankruptcy protection if it can’t find a way forward.
Also earlier this week, digital-asset entrepreneur Cameron Winklevoss accused Silbert of “bad faith stall tactics” and the intermingling of funds within his conglomerate that Winklevoss says have left $900 million in customer assets needlessly in limbo since FTX’s meltdown. Gemini Trust Co., founded by Winklevoss and his twin brother Tyler, paused redemptions on a lending product called Earn, which offered investors the potential to generate as much as 8% in interest on their digital coins. It did so by lending them out to Genesis Global Capital. Silbert denied the allegations.
Bloomberg News reported last year that Matt Ballensweig, co-head of sales and trading, Michael Paleokrassas, managing director of trading, and Reed Werbitt, head of cash trading, departed Genesis. Joshua Lim, head of derivatives at the company, had also left. Genesis had in August said it was eliminating 20% of its workforce and its Chief Executive Officer Michael Moro also stepped down at the time.
(Updates with comment from Genesis spokesperson in the third paragraph.)
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