By Senad Karaahmetovic
Genesis Global Trading, one of the world’s largest cryptocurrency lenders, has reportedly cut its workforce by 30% and is considering filing for bankruptcy, according to the Wall Street Journal.
The layoffs, implemented across the company, were communicated on Thursday, leaving the company with 145 employees. The spokeswoman told the WSJ that Genesis strives “to preserve customer assets and move the business forward.”
The aggressive cost-cutting measures are the result of large losses related to loans Genesis provided to FTX-linked 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 global workforce. These actions are part of our ongoing efforts to move our business forward,” said a door- word of Genesis.
Genesis attempted to shore up its funding by raising funds from Binance and private equity tide Apollo Global Management (NYSE:). The cryptocurrency lender cut 20% of its staff last summer, while CEO Michael Moro stepped down after Three Arrows went bankrupt. Genesis provided the hedge fund with a $2.4 billion loan.
Genesis is owned by Digital Currency Group, which operates several crypto-focused businesses, including asset manager Grayscale Investments and media outlet CoinDesk.