Genesis Chief Executive Officer Michael Moro is stepping down as part of a leadership change following the crypto brokerage’s exposure to insolvent hedge fund Three Arrows Capital and a general market decline.
In addition, the New York-based company announced Wednesday that it will lay off 20% of its 260-person workforce to save costs.
Genesis said in a statement that Chief Operating Officer Derar Islim will serve as interim CEO while the company searches for a permanent replacement. Moro will provide guidance to the firm during the transition. According to the company, Tom Conheeney, formerly president of SAC Capital and Point72 Asset Management, will join as a board member and senior adviser. It also announced the addition of risk, compliance, and technology leaders.
“Our clients look to Genesis to provide integral capital and execution services across their digital asset portfolios,” said Derar Islim, Interim Chief Executive Officer. “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.”
Genesis, a subsidiary of crypto conglomerate Digital Currency Group, was the fund’s largest creditor when it failed to pay margin calls. Its parent accepted some liabilities and filed a $1.2 billion claim against the insolvent Three Arrows.
Genesis is one of the largest and most well-known digital asset lenders. The corporation reported last week that new loan originations in the second quarter fell 9% from the prior period to around $40 billion. According to CoinMarketCap, the value of cryptocurrency has dropped by half this year to around $1.1 trillion.
