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Crypto loan platform Genesis Global Trading would have cut 30% of its labor in its second round of layouts in six months.
In the words of a jan. 5 Wall Street Journal report, Genesis reduced its staff by 30% following the platform suffering losses from loans to Alameda Research and Three Arrows Capital. A customer update on jan. 4 said the firm planned to reduce costs as part of its business plans.
“As we continue to face unprecedented challenges in the industry, Genesis has made the difficult decision to downsize our workforce globally," Cointelegraph spokesman said. These actions are part of our continued efforts to advance our operations."
Genesis announced in August that it intended to reduce its labour force, which was 260 at the time, by 20% in order to eliminate costs. CEO Michael Moro also said he would be stepping down from leadership and moving into an advisory role.
The crypto lending firm halted withdrawals and suspended new loan originations in November, citing “unprecedented market turmoil.” Three Arrows Capital went out of business in a down market environment in 2022, when Alameda was part of the FTX Group chapter 11 deposit in November—Genesis asked for billions of dollars in loans from both companies.
Related: Genesis Trading CEO confirms 3AC exposure, parent company helps plug losses
Voyager Digital was another firm reporting financial difficulties amid exposure to Three Arrows in 2022, with the company declaring bankruptcy in July. Binance.US announced plans to acquire the lending firm’s assets for more than $1 billion following the collapse of FTX US.
