Entries related to Genesis

November 16, 2022

Genesis crypto lending service halts withdrawals

The crypto lending portion of Genesis Global Trading announced they would be halting withdrawals in the wake of the "extreme market dislocation and loss of industry confidence caused by the FTX implosion". On Twitter, they wrote that "FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity."

They urged in their announcement that the decision would not impact their trading or custody businesses — though if I was a user of their other services I might not be feeling so reassured given crypto companies' poor track record of segregating operations.

Genesis has about $2.8 billion in total active loans as of the end of September 2022.

This is not the first crisis for Genesis this year. The firm lost hundreds of millions due to exposure to the Three Arrows Capital collapse, and in August announced layoffs of 20% of their employees.

September 28, 2022

Crypto executive exodus continues

The wave of crypto executives stepping down from their roles is continuing, after Genesis' CEO left the company and Michael Saylor gave up his CEO title (but stayed on as chairman) in August.

Now, Genesis' managing director has stepped down after five years. Kraken CEO Jesse Powell relinquished his title, planning to remain at the firm as a chairman. Alex Mashinsky has resigned as the CEO of Celsius Network in the midst of bankruptcy proceedings. And FTX US president Brett Harrison will also be stepping down.

"Genesis director to step down and move into advisory role", Cointelegraph
"C.E.O. of Kraken, the Cryptocurrency Exchange, Steps Down", The New York Times
"C.E.O. of Celsius, the Crypto Bank, Resigns", The New York Times
"Brett Harrison will step down as FTX US president, move into advisory role", Cointelegraph

August 17, 2022

Genesis lays off 20% of employees, jettisons CEO after Three Arrows Capital disaster

(attribution)

Crypto broker Genesis is laying off 20% of their employees and reshuffling their leadership in the wake of a several-hundred-million dollar loss related to the Three Arrows Capital implosion. With 260 employees, the 20% workforce cut will affect around 50 employees. Genesis also announced that their CEO Michael Moro would be "stepping down".

"Genesis Announces New Leadership Team", press release
"Genesis CEO Steps Down as Crypto Broker Slashes Its Workforce", Bloomberg

July 6, 2022

Genesis lost hundreds of millions due to exposure to Three Arrows Capital and Babel Finance

(attribution)

Genesis, a crypto broker and lender, suffered "a few hundred million dollars" in losses during the recent crypto downturn. This were largely due to the firm's exposure to the bankrupt Three Arrows Capital.

Genesis is owned by the deep-pocketed Digital Currency Group (DCG), which may enable it to weather this loss better than some of its crypto brethren. CEO Michael Moro tweeted that "DCG has assumed certain liabilities of Genesis" relating to Three Arrows Capital's inability to meet a margin call.

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