Massive crypto lender Genesis Global Trading laid off 30% of its staff and is considering filing for bankruptcy, the latest sign of financial turmoil at the crypto lender. The layoffs weren’t confined to one department and were across the company. Genesis has 145 employees left after Thursday’s layoffs.
Genesis suffered steep losses from loans it supplied to the now-defunct trading firm Alameda Research and crypto hedge fund Three Arrows Capital. Both Alameda and Three Arrows filed for bankruptcy last year. “As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our head count globally. These measures are part of our ongoing efforts to move our business forward,” a spokeswoman for Genesis said. Last summer, Genesis cut 20% of its 260-person workforce—and its chief executive Michael Moro stepped down—after Three Arrows was forced to liquidate. Genesis had given the hedge fund a $2.4 billion loan with 50% collateral. Genesis has disagreed with this characterization, and Mr. Moro has said the collateral was closer to 80%.