Michael Moro, the CEO of Genesis Trading, is stepping down from the position he held for nearly a decade because of the ongoing crypto market downturn. He will continue to help the company through the transition. Genesis Trading is going through challenging times because of exposure to Three Arrows Capital (3AC).
It also announced a 20% staff reduction. This comes after the announcement that it had lent $40 billion in the second quarter – down 9% from the first quarter. Derar Islim, Genesis’s chief operating officer, said the changes and investments affirm the company’s commitment to operational excellence as it continues to expand its services to meet the needs of its clients.
Despite the staff cut, Genesis has hired several key executives, chief risk officer Michael Patchen, chief compliance officer Michael Patterson, and chief technology officer Matthew Johnson, who will further strengthen its management and pivot the firm for the future. Alice Chan, the chief financial officer, and Arianna Pretto-Sakmann, the chief legal officer, join the team with the intention to strengthen Genesis Trading’s overall risk management.
Last week, Genesis Trading said it originated more than $40 billion in new loans in Q2 2022 – reflecting a 9% drop from the first quarter. The New York-based company had $4.9 billion in active loans at June end while reporting over $17 billion in spot volume trading during the second quarter. Genesis Trading was the biggest creditor of the now bankrupt Three Arrows Capital, with a huge $2.36 billion owed to the firm.
