The Genesis CEO leaves the company after the crypto broker has been hit by the collapse of Three Arrows

The crypto broker Genesis will reduce a fifth of his staff and replace his CEO, as he expects the costs for lending to the HEDGEE Arrows Capital to $ 2.4 billion.

The departure of Michael Moro After six years, one of the most prominent victims of the collapse of Three Arrows, which reverberates in the digital asset sector. Genesis will also reduce around 20 percent of his 260 employees, it said.

The US group was one of the companies that were most affected by the failure of Three Arrows, the crypto hedge fund from Singapore, who registered bankruptcy in July when its bets on Bitcoin and other cryptocurrencies were stalled this year due to the strong sale of digital assets.

Many of the best -known names in the industry, including Voyager Digital, Blockfi and Deribit, were also forced to liquidate some of the positions of Three Arrows when the investment shop did not meet the claims. Court documents showed that Genesis Three Arrows had borrowed $ 2.4 billion loans.

The parent company of Genesis, founded by investor Barry Silbert, the Digital Currency Group, has taken on the liabilities of the trading company in connection with Three Arrows and submitted a claim of $ 1.2 billion in the US bankruptcy proceedings.

MORO said in July that the Digital Currency Group "took over certain liabilities from Genesis in connection with [Three Arrows] to ensure that we have capital to operate and scale our business in the long term."

Genesis said his new leadership will concentrate on the "strengthening of the company's entire risk management". The changes would enable the company to "emerge even more than before".

Chief Operating Officer Derar Islim, who came to Genesis in 2020, after working for the Hard Yaka Risk capital Society and the Bank of America in San Francisco, Moro will temporarily replace. It started with the search for a full-time successor.

Genesis also announced new appointments for leading positions in the areas of governance, compliance and risk of the company. Tom Conheeney, President of Steven Cohen's former hedge fund SAC Capital and his successor Point72 Asset Management, has been appointed Senior Advisor.

"It was an honor for me to lead Genesis for almost a decade, and I look forward to supporting the next growth phase of the company," said Moro in an explanation.

Other large companies, including Coinbase, Crypto.com and Gemini, have announced job cuts after they were surprised by the severe decline in cryptocurrency prices. Large crypto tokens fell by up to 70 percent last autumn last autumn, as investors, who were frightened by the tightening of central bank policy.