Genesis cuts 30% of staff – Genesis Global Trading Inc. fired 30% of its employees in a second round of layoffs in six months. The company is now considering filing for bankruptcy as the FTX contagion spreads.
- Genesis Trading will let go of another 145 people as part of its second round of job cuts in six months.
- Genesis was poorly hurt when the cryptocurrency exchange FTX shut down because it had $175 million locked up in an account with FTX.
- Genesis also owes $900 million to the cryptocurrency exchange Gemini, which criticized how Genesis handled the crisis.
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Getting rid of more people
In the most recent change, 145 people who work for Genesis will lose their jobs. In August of last year, the company fired 260 people. And in a challenging business climate, the company said Wednesday that it would “reduce costs and drive efficiencies.” This led to job cuts.
In a letter sent to clients on Wednesday, Interim CEO Derar Islim said, “We are committed to moving as quickly as possible, but this is a very complicated process that will take some more time.”
It is said that a crypto lender is about to fail.
Even though Genesis hasn’t said it would file for bankruptcy publicly, the latest news suggests that the company is about to do so. After FTX went down in November 2022, the cryptocurrency lender stopped letting people take out the money because it had $175 million locked up in an FTX trading account. When it asked Binance to help raise at least $1 billion in new capital, Binance said no.
The Digital Currency Group (DCG), founded and owned by cryptocurrency industry veteran Barry Silbert, is the business behind both Genesis and CoinDesk.
Worried Are the Winklevoss Brothers
Gemini, a crypto exchange that owes money to Genesis, doesn’t like how Genesis handles its recent financial problems. Genesis owes Gemini $900 million, and its founders, the Winklevoss twins, are blaming Digital Currency Group, the parent company of Genesis.
Cameron Winklevoss sent an open letter to DCG CEO Barry Silbert on Monday. In the letter, Winklevoss said that the parent company acted in “bad faith” by moving slowly on a deal to return the $900 million Gemini’s Earn program clients owed.
In conclusion
Genesis cuts 30% of staff – Thursday, Silvergate Capital said it was letting go of 40% of its staff, which worsened the problems for Digital Currency Group and Genesis.
DCG put $114 million into Silvergate Capital to help the bank’s efforts to use fintech to make deposits.
The fall of FTX is still shaking up the crypto industry, and it doesn’t look like the effects will stop soon.
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