Genesis Trading reduced 30% of its staff strength ahead of bankruptcy filing plans.
Genesis Trading is a Digital Currency Group company, which provides over-the-counter digital currency trading for high-net-worth individuals and institutions. In Nov 2022, the platform faced significant financial losses over its significant exposure to the FTX exchange. On 11 Nov, FTX filed for bankruptcy in a US district bankruptcy court and on 16 Nov Genesis suspended fund withdrawal services from its platform.
On 5 Jan 2023, The Wall Street Journal (WSJ) reported that Genesis reduced huge numbers of employees from its all departments and now there are only 145 employees in the whole company.
This struggling crypto lending platform also hired an investment bank and financial advisory firm Moelis & Co. to bring better decisions for the future restructuring plan of Genesis. But experts close to this matter noted that potentially they may choose bankruptcy filing as the best decision.
An official from Genesis confirmed that they are working to make the best decision in the current critical phase.
Spokesperson reportedly said:
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward.“
In the last week, the Genesis platform grabbed huge negative popularity because of its controversy with Gemini CEO Barry Silbert. Barry lent funds to Genesis, and now he wants those funds back from Genesis before bankruptcy.
Genesis & Gemini crypto exchange were working together in a service partnership, where Genesis crypto lending services were available to the Gemini users via the exchange. Gemini had $900 million in customer funds locked with its yield partner Genesis.
Digital Currency Group (DCG) is the parent company behind the Genesis platform and also multiple Crypto companies are under this company, which are Grayscale, CoinDesk, bitcoin mining advisory firm Foundry, crypto exchange Luno, and end-to-end crypto trading platform TradeBlock. Experts believe that DCG may liquidate its significant portion of the staked position from Grayscale in near future.
Read also: Bank of France governor says we shouldn’t wait for EU’ Crypto law
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