Given the growing pressure from creditors and the potential for bankruptcy, Genesis Trading has begun a new round of layoffs that would reduce its workforce by 30%.
Following Three Arrows Capital's losses, CEO Michael Moro will step down. As a result, 20% of the company's 260 employees will be let go in order to significantly restructure the business.
Since the numbers are confidential, CNBC reported today that an anonymous source stated that roughly 60 employees had been eliminated. The company currently has 145 employees.
Genesis had told the news organization that it was trying to keep the company from filing for bankruptcy. CEO of Digital Currency Group Barry Silbert acknowledged that the company was looking into alternatives in a letter from November.
Genesis Trading, a cryptocurrency lender, tried to raise up to $1 billion in cash about two weeks before DCG CEO wrote the letter before deciding to halt withdrawals on the evening of November 16.
Genesis, meanwhile, said in a message to clients yesterday that it will keep working with experts to find funding options, It will take time to complete this challenging procedure, despite the team's best efforts.
The same week, Gemini co-founder Cameron Winklevoss blasted DCG CEO Barry Silbert for using "bad faith stall tactics" and claimed Silbert misused $1.675 billion in monies owed to Genesis by DCG for purposes other than paying creditors.
Silbert responded on Twitter, asserting that DCG is current on all outstanding debts and has never borrowed $1.675 billion from Genesis.