Genesis Lends $2.36 Billion to 3AC, Loses Money, CEO Michael Moro, and 20% of Staff

On Wednesday (August 17), full-service digital currency prime broker Genesis, a wholly-owned subsidiary of Digital Currency Group (DCG), announced that CEO Michael Moro is “stepping down and will continue to advise the company through the transition.”

The firm’s press release wen ton to say that “Chief Operating Officer Derar Islim, Ph.D., who joined Genesis in 2020 and has overseen the development of strategy and key core functions, has been appointed interim Chief Executive Officer” and that “seasoned financial services executive Tom Conheeney will consult to Genesis as a Senior Advisor, where he will support Islim on the firm’s overall strategy while advising the trading, lending, and risk teams.” Apparently, Conheeney will “join Islim on the company’s Board of Directors. Genesis has also commenced a search for a full-time CEO.”

Derar Islim, Interim Chief Executive Officer, had this to say:

“Our clients look to Genesis to provide integral capital and execution services across their digital asset portfolios. The changes and investments we’re announcing today affirm our commitment to operational excellence as we continue to expand our services to meet the needs of our clients today and into the future.“

And Michael Moro stated:

“Since we launched the first OTC bitcoin trading desk in 2013, sophisticated investors have come to Genesis to provide liquidity, lending, and custody services for their digital assets. It has been an honor to lead Genesis for nearly a decade and I look forward to supporting the company’s next phase of growth.“

A report by The Block published earlier today stated that they had been told by Genesis that staff headcount had been reduced by 20% as Genesis tries to focus on strategic priorities, such as “advancing its business excellence and overall infrastructure including in areas such as risk, compliance, and technology.”

The Block’s report also mentioned that “Genesis lent $2.36 billion to failed crypto hedge fund Three Arrows Capital (3AC) – having taken on Genesis’ liabilities the Digital Currency Group (DCG) made a $1.2 billion claim against 3AC.”

On July 6, Moro took to Twitter to provide an update on the firm’s losses as the result of its lending to 3AC:

Image Credit

Featured Image via Pixabay

Source: Read Full Article