Over-the-counter cryptocurrency dealer Genesis Trading has confirmed a 20% staff cut and also announced the departure of Michael Moreau as CEO of the company.
Michael Moro will continue to advise the company while Chief Operating Officer Derar Islim takes over as CEO, according to a statement from Genesis Trading. Former President of Asset Management at SAC Capital and Point72 Tom Conheeny will advise Genesis Trading as a senior advisor. He will support Islim on the company’s overall strategy and advise the company on trading, lending and risk management.
“We are aligning our organization with our strategic priorities,” said the crypto dealer.
The company added that strategic priorities include improving the quality of the business and overall infrastructure, including in areas such as risk, compliance and technology. Conhini’s appointment and concerted risk-mitigation and compliance efforts appear to stem from the company’s recent losses – Genesis Trading lent $2.36 billion to failed cryptocurrency hedge fund Three Arrows Capital (TAC).
Moreau previously explained that the TAC loans required a weighted average margin of over 80%, which Three Arrows Capital was unable to meet, prompting Genesis Trading to sell its collateral. He added that Digital Currency Group, which owns the cryptocurrency lender, has made certain commitments to ensure that the capital is available to “manage and scale” its business in the future. In June, it became known that Genesis Trading is demanding at least partial compensation from TAC for losses.
Source: Bits
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