Genesis Trading, a cryptocurrency lender, fires 30% of its employees.

20% of Genesis' workers had previously been let go, and the CEO was changed in 2017. The Grayscale Bitcoin Trust is a part of Silbert's crypto conglomerate. (GBTC) and mining firm Foundry were impacted by the 2022 market turbulence and the collapse of cryptocurrency hedge fund Three Arrows Capital.

Based on the insider, who requested not to be identified since the figures are private, about 60 jobs were cut. At this time, the company employs about 145 people. Within a day of interim CEO Derar Islim telling clients that Genesis required additional time to resolve its economic meltdown, the latest cut was announced.

Prior to this, the Wall Street Journal covered the cuts.

Soon after the demise of the cryptocurrency exchange FTX and its sibling hedge fund Alameda Research, Genesis hired bankruptcy experts. According to the Wall Street Journal, immediately after Alameda, a significant Genesis client, collapsed, Genesis requested an urgent loan of $1 billion. Genesis stopped all redemptions when FTX sought bankruptcy proceedings on November 11.

The atonement freeze has brought criticism on Silbert. A Genesis customer and the head of the cryptocurrency exchange Gemini, Cameron Winklevoss, accused Silbert of using “bad faith” stalling strategies previously this week and urged that Genesis find an answer to its liquidity crisis. According to him, Gemini clients and other Genesis creditors are owed $1.675 billion by DCG.

Silbert reacted on Twitter by stating that DCG “is currently on all loans due” and that DCG never obtained $1.675 billion from Genesis.

Genesis Crypto Lender Wants to consider Insolvency, Fires 30% of Staff

The crypto lender is the newest company dealing in digital assets to face survival issues. Numerous cryptocurrency companies filed for bankruptcy last year as a result of the Federal Reserve raising interest rates and devaluing the most risky assets. Blowups in the loosely regulated industry spread to other businesses, showing how interwoven the young sector is. The Fed has indicated it will keep hiking interest rates. Traders are preparing for further cryptocurrency suffering.

Due to debts it provided to now-defunct trading company Alameda Research and the cryptocurrency hedge fund Three Arrows Capital, Genesis experienced significant losses. Last year, Alameda and Three Arrows both declared bankruptcy.

When Three Arrows was forced to liquidate, Genesis reduced 20% of its own 260-person staff and its CEO Michael Moro resigned. Genesis had provided a $2.4 billion loan to the hedging firm with 50% collateral. Genesis disputes this description, and according to Mr. Moro, the security was considerably closer to 80%.

Additionally, the lender had trouble keeping its risk assessment team's captains. Most recently, according to his LinkedIn profile, chief risk manager Michael Patchen abruptly left his position in October after only a few months on the job.

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