Crypto Lender Genesis lays off 30% of its staff, report

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Barry Silbert, owner of the Digital Currency Group, owner of Genesis Trading. Photo: Joe Buglewicz/Getty Images

Genesis Trading has laid off 30% of its staff as it continues to consider filing for bankruptcy, according to a new report from The Wall Street Journal.

Why it matters: If Genesis goes down, it could mean the FTX contagion hasn’t been resolved. Additionally, as a subsidiary of the Digital Currency Group, there is the looming threat that its downfall could also bring down a stalwart of the blockchain industry.

Quick catch-up: In November, Genesis announced it was suspending withdrawals for depositors who had contributed funds to its lending unit, blaming the decision on the repercussions of FTX’s bankruptcy.

Genesis has provided four updates to clients since FTX’s collapse, none of which addressed when withdrawals might be reopened. The company, via an outside spokesperson for strategic adviser FGS Global, confirmed that the deposits remain frozen.

What they’re saying: In a Wednesday update to clients, Interim CEO Derar Islim wrote, “We believe we can come to a solution. We will continue to give you updates on significant developments, including updates on the schedule.

Worth noting: Also yesterday, a ruling in the bankruptcy case of another Celsius cryptocurrency lender may make Genesis depositors more anxious.

The judge concluded that the depositor’s assets belonged to the estate (i.e. Celsius) and could be used to fund continued operations.

By the Numbers: No specific employee numbers have been reported regarding the Genesis layoff. In August 2022, the WSJ reported that it had let go of 20% of a staff of 260, which would have increased it to about 200 employees.

If the workforce remained at the same level since August, a 30% reduction would now mean around 70 more people.

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