Genesis Reduced Head Count, Trouble Ahead?

G

enesis Global Trading is purportedly examining the possibility of filing for bankruptcy, while at the same time reducing their workforce.

According to The Wall Street Journal, the cryptocurrency lender has laid off an estimated 30% of its personnel across various departments. To better assess their options moving forward, they have been in consultation with an investment bank.

In response to an inquiry, a Genesis spokesperson provided PYMNTS with the following statement via email: “As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward.”

Derar Islim, the Interim CEO of Genesis Global Capital, informed customers in a letter that the organization requires more time to repair its borrowing and lending services. He also mentioned that all derivatives and spot trading activities are still available as usual; furthermore, costs have been reduced along with efficiencies implemented into all business lines. In short, plans for enhancement of Genesis' operations are in progress.

“Genesis remains focused on finding a solution for our borrowing and lending intermediation business and reaching the best outcome for all affected clients,” On Wednesday (Jan. 4), Islim emphatically declared in a letter. “We continue working with our advisors, in collaboration with [Genesis owner Digital Currency Group (DCG)] and advisors appointed by various client groups, to evaluate options to preserve client assets and move the business forward.”

In November, Genesis was forced to abruptly halt withdrawals from their lending arm due to the market's "unprecedented turmoil," as reported by PYMNTS. This tumultuous event arose from FTX and its affiliates' insolvency, causing major repercussions for those involved.

In the beginning of December, it was exposed that Genesis had incurred a substantial debt to Gemini for their partnership in the "earn" program. The Winklevoss brothers, the co-founders of both companies, were attempting to recover this amounting sum of $900 million.

Adding to the growing list of tech companies that have made job cuts this year amidst high inflation and interest rates, Genesis has unfortunately resorted to layoffs.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.