Genesis Chief Executive Officer Michael Moro is stepping down as part of the firm’s leadership shuffle. The reports come in after the crypto brokerage was caught up with bankrupt hedge fund Three Arrows Capital and a broad market downturn.
The New York-based firm also stated it is eliminating 20% of its 260-person workforce for cost-cutting.
Chief Operating Officer Derar Islim will take over as interim CEO during a search for a permanent replacement. Moro will guide the firm through the transition. Tom Conheeney, formerly president of SAC Capital and Point72 Asset Management, will join as a board member and senior adviser. The company also informed the addition of executives in risk, compliance, and technology.
The interim CEO Islim believes that the changes and investments they announce affirm their commitment to operational excellence as the company continues to expand its services to meet the requirements of clients.
A unit of crypto conglomerate Digital Currency Group, Genesis was the biggest creditor entangled in the collapse of Three Arrows after, the fund failed to fulfill margin calls. Its parent took some liabilities and filed a $1.2 billion claim against Three Arrows, which is under liquidation.
Genesis is one of the biggest and well-known lenders in digital assets. The company stated last week that second-quarter new-loan origination had reduced 9% from the previous period to about $40 billion. Crypto’s market value has plunged 50% this year to about $1.1 trillion.
On stepping down as the CEO Moro remarks that since they launched the first OTC Bitcoin trading desk in 2013, refined investors have come to Genesis to provide liquidity, lending, and custody services for their digital assets, and it has been an honor to lead Genesis for nearly a decade. Moro also said he is looking forward to supporting the company’s next phase of growth.
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