By Senad Karaahmetovic
Genesis Global Trading, one of the biggest crypto lenders around the globe, has reportedly slashed its workforce by 30% and is considering filing for bankruptcy, according to the Wall Street Journal.
Layoffs, implemented across the business, were communicated on Thursday, leaving the company with 145 employees. The spokeswoman told WSJ that Genesis is working “to preserve client assets and move the business forward.”
Aggressive cost-cutting actions are a result of significant losses from loans Genesis supplied to FTX-tied Alameda Research and crypto hedge fund Three Arrows Capital. Both 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.
Genesis has tried to shore up its finance by raising funds from Binance and private equity tidal Apollo Global Management (NYSE:APO). The crypto lender cut 20% of its staff last summer while CEO Michael Moro resigned after Three Arrows went bust. Genesis gave the hedge fund a $2.4 billion loan.
Genesis is owned by Digital Currency Group, which operates several crypto-focused businesses, including asset manager Grayscale Investments and news outlet CoinDesk.