According to a person with knowledge of the matter, Genesis Trading, the digital currency lending arm of Barry Silbert's Digital Currency Group, has slashed its staff by 30% as it faces increasing pressure from its creditor and the threat of bankruptcy.
The CEO of Genesis was replaced last year. The market tumult of 2022, as well as the bankruptcy of Three Arrows Capital, took a toll on Silbert's group of companies.
The source asked not to be named because the numbers are confidential. More than 100 jobs have been cut. Genesis needs more time to solve its financial crisis, according to interim CEO Derar I Slim.
The Wall Street Journal was the first to report on the cuts.
Genesis bankruptcy professionals were involved in the collapse of FTX. Genesis, a major Genesis client, sought an emergency loan of $1 billion after the implosion of Alameda. Genesis stopped redemptions after FTX filed for protection.
The redemption freeze has led to criticism of Silbert. Silbert was accused of engaging in bad faith stalling tactics by a Genesis client and CEO. He said DCG owes a lot of money.
DCG is current on all of its loans, according to Silbert, who responded on the social networking site.
Genesis has stopped withdrawing money.
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