The CEO of cryptocurrency brokerage Genesis, Michael Moro, has announced his resignation as the company rearranges its management staff and reportedly plans to lay off 20% of its 260 employees.
According to a statement from Genesis, Moro will guide the business during the transition while chief operational officer Derar Islim will serve as interim CEO.
Along with new senior advisers, Genesis has also hired new department heads for risk, compliance, technology, finance, and legal affairs.
As a wholly-owned subsidiary of the cryptocurrency company Digital Currency Group (DCG), Genesis provided 50% of the collateral for Three Arrows’ $2.4 billion loan, according to the Wall Street Journal. DCG was severely impacted by 3AC’s bankruptcy.
According to the news mentioned in a court document that was originally posted on its liquidation page, DCG is still Three Arrows’ biggest creditor and even after the liquidation of the collateral, the group still has a claim on 3AC worth up to US$1.2 billion.
Due to its connections to both 3AC and Babel Finance, Genesis might suffer hundreds of millions of dollars in losses in the event that the crypto market collapses.