Genesis Trading has announced drastic reductions to its workforce as a way to cut costs at the struggling institutional crypto firm.
Although the company didn’t provide exact numbers, sources close to this matter confirmed that they were. Decrypt Genesis has fired 30% of its employees.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” a Genesis spokesperson told Decrypt via email.
“These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work to identify the best outcome for Genesis’s business, clients and employees for the long-term.”
Genesis has faced severe financial challenges Now for several months Since November, when FTX collapsed, it has stopped withdrawals. At the time, the company disclosed that it was exposed to FTX for $175 million.
Act Now GeminiThe Winklevoss twins founded a New York-based crypto trading platform called. They are urging Genesis to return the funds it funneled to Genesis for investment through their Gemini. Earn program.
Gemini estimates that Genesis owes Gemini $900 million. Genesis is Gemini’s parent company. DCG To blame. On Monday, Cameron Winklevoss wrote an open letter to DCG CEO Barry Silbert accusing him of “bad faith stall tactics” and claimed that a $1.7 billion loan from Genesis to DCG was the source of the holdup. Silbert refuted the allegations.
Genesis Interim CEO Derar Islim wrote Wednesday that while “this is a very complex process that will take some additional time,” Islim believes a solution is on the horizon.
The solution appears to be a reduction in staff. In his Wednesday letter, Islim said that Genesis’ efforts will include “reducing costs and driving efficiencies in all our business lines.”