Fans of the Genesis crypto trading platform are likely feeling a mix of emotions today following the departure of the company’s CEO and news of impending layoffs.
This morning, Genesis CEO Michael Moro announced he would be leaving the firm effective immediately. As part of a wider press release announcing a new leadership team, Genesis revealed that Moro would be leaving the company while advising the new leadership through its transition. Current COO Derar Islim will replace Moro as the interim CEO while Genesis pursues a full-time fit for the role.
As part of the release, Genesis is also moving forward with a number of new management changes. Financial Services Executive Tom Conheeney will consult Genesis as a Senior Advisor, joining the board of directors. The company is also adding a new Chief Risk Officer, CFO and other top executive positions.
COO Derar Islim commented on the staffing changes:
“Our clients look to Genesis to provide integral capital and execution services across their digital asset portfolios […] 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 Crypto Platform Undergoes Growing Pains Following Crypto Winter
As part of its leadership changes, Genesis is also laying off roughly 20% of its 260 person workforce. Genesis is yet another victim of the cold crypto winter that has seen many flagship cryptos lose substantial value.
Last month, news broke that Genesis was the largest creditor of the now bankrupt Three Arrows Capital. The firm owed Genesis nearly $2.5 billion. Digital Currency Group is taking on part of the liabilities to ensure Genesis’ continued operations. In addition, the conglomerate is filing a $1.2 billion suit against Three Arrows.
According to Bloomberg, crypto’s overall market value has dropped by roughly 50% this year. That leaves firms like Genesis woefully exposed to substantial losses.
Genesis is best-known for offering the first over-the-counter Bitcoin (BTC-USD) trading desk in 2013. The firm has stayed relevant through its crypto offerings since, although it still lags behind the likes of Binance (BNB-USD) and Coinbase (NASDAQ:COIN).
Whether Genesis can regain its footing following these sweeping leadership and staffing changes remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.