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.
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Now, let's delve into the information presented in the article about Genesis CEO Michael Moro stepping down and the company's workforce reduction:
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Genesis CEO Michael Moro's Departure:
- Michael Moro's decision to step down as the CEO of Genesis is a significant development within the cryptocurrency industry. It indicates a response to challenges faced by the company, particularly related to major losses tied to the collapse of Three Arrows Capital.
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Workforce Reduction:
- The article reports that Genesis is cutting 20% of its 260-person workforce. Workforce reduction is a common strategy adopted by companies facing financial challenges or restructuring. In this case, the move is a reaction to the losses incurred due to the collapse of Three Arrows Capital.
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Genesis' Claim Against Three Arrows Capital:
- Genesis, owned by Digital Currency Group (DCG), filed a $1.2 billion claim against the failed crypto hedge fund Three Arrows Capital in July. The claim is a legal action taken by Genesis to recover losses incurred as a result of the collapse of Three Arrows Capital. DCG assumed this claim and associated liabilities from Genesis last month.
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Impact of Crypto Market Downturn:
- The article mentions that Genesis, along with other companies, was impacted by the crypto market downturn in May. The downturn was triggered by the implosion of LUNA and the Terra ecosystem, the demise of crypto lender Celsius Network, and the collapse of Three Arrows Capital. These events led to widespread layoffs, bad debt, and bankruptcy filings across the industry.
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Leadership Changes:
- Derar Islim, the current Chief Operating Officer of Genesis, who joined the company in 2020, is stepping in as the interim CEO following Michael Moro's departure. This is a common practice during leadership transitions as the company searches for a permanent replacement.
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Board Member and Senior Adviser Appointment:
- Genesis has appointed Tom Conheeney, former SAC Capital and Point72 Asset Management President, as a board member and senior adviser. This move suggests that Genesis is bringing in experienced leadership to navigate through its current challenges and strategize for the future.
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Commitment to Operational Excellence:
- The article quotes Derar Islim stating that the changes and investments being announced reaffirm Genesis' commitment to operational excellence. This implies that Genesis is taking proactive measures to improve its operations and services amid the ongoing industry challenges.
In summary, the information provided in the article outlines the challenges faced by Genesis, including losses tied to the collapse of Three Arrows Capital, the impact of the crypto market downturn, and subsequent organizational changes aimed at addressing these challenges. The appointment of experienced leadership and the commitment to operational excellence signal the company's determination to overcome current difficulties and adapt to the evolving crypto landscape.
