Michael Moro, the CEO of the popular crypto broker Genesis Global Trading, has stepped down from his CEO position. The news came to light last Wednesday and took the crypto industry by surprise.
According to reports, Genesis Global Trading had loaned a significant amount of money to a hedge fund called Three Arrows Capital. However, the hedge fund filed for bankruptcy, leading to Genesis losing all of its money.
Talking about their loan, the company stated, “Genesis had loan exposure to Three Arrows Capital. Our parent company DCG assumed the liability related to losses on these loans, leaving our balance sheet healthy so Genesis could continue to be a source of strength for our clients.”
In the wake of this event, DCG also filed a claim of $1.2 billion against Three Arrows Capital.
As the loan condition soured along with the poor conditions of the crypto market, Genesis had to slash its workforce by 20%. Following this, Genesis Trading also announced that its Chief Executing Officer, Michael Moro, would be stepping down from his position effective immediately.
While the company seeks a permanent replacement for Moro, the Chief Operating Officer, Derar Islim, will serve as the interim CEO of the company. However, Moro will stay in the company during the leadership transition to ensure everything goes on smoothly.
The crypto broker also announced a complete restructuring of its workforce from top to bottom. In a press release, the company said that they are making “key executive leadership hires to further strengthen its governance and position the firm for the future.”