Crypto Broker Genesis Cutting 20% of Workforce as CEO Michael Moro Exits
Moro is to be replaced on an interim basis by Chief Operating Officer Derar Islim.
Genesis CEO Michael Moro is stepping down as the company slashes 20% of its 260-person workforce following major losses tied to the collapse of Three Arrows Capital earlier this summer, reports Bloomberg.
Genesis – owned by Digital Currency Group (DCG), which is also the parent of CoinDesk – filed a $1.2 billion claim against failed crypto hedge fund Three Arrows Capital in July. DCG assumed that claim and associated liabilities from Genesis last month.
The New York-based broker was one of several companies impacted by the crypto market downturn in May. The implosion of LUNA and the Terra ecosystem, followed by the demise of crypto lender Celsius Network as well as the collapse of Three Arrows Capital, led to a slew of layoffs, bad debt and bankruptcy filings throughout the industry.
Current Chief Operating Officer Derar Islim, who joined Genesis in 2020, is replacing Moro on an interim basis as the company searches for a permanent replacement. Genesis has also brought on former SAC Capital and Point72 Asset Management President Tom Conheeney as a board member and senior adviser.
“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,” Islim said in a statement.
UPDATE (Aug 17, 2022, 14:31 UTC): Adds paragraph on crypto market slump and additional details throughout.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.