Barry Silbert's Genesis Trading reduced headcount by 30%, or 60 jobs, as the crypto lender fends off a potential bankruptcy filing after the collapse of FTX.
Barry Silbert, Founder and CEO, Digital Currency Group
David A. Grogan | CNBC
Genesis Trading, the embattled crypto lending arm of Barry Silbert’s Digital Currency Group, has cut headcount by 30% as it faces increasing pressure from creditors and the looming threat of bankruptcy, according to a person with knowledge of the matter.
9 hours ago
About 60 positions were eliminated, said the source, who asked not to be named because the numbers are confidential. A total of 145 jobs have now been cut. The latest reduction comes a day after interim CEO Derar Islim told clients that Genesis needed more time to solve its financial crisis.
Genesis engaged bankruptcy professionals shortly after the collapse of crypto exchange FTX and its sister hedge fund Alameda Research. The Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion shortly after the implosion of Alameda, which was a major Genesis client. Genesis froze redemptions for all clients after FTX filed for bankruptcy protection on Nov. 11.
Silbert has come under fire as a result of the redemption freeze. Earlier this week, Cameron Winklevoss, a Genesis client and CEO of crypto exchange Gemini, accused Silbert of engaging in “bad faith” stalling tactics and demanded a solution to the liquidity crisis at Genesis. He said DCG owes $1.675 billion to Gemini customers.
Silbert responded on Twitter by saying that DCG never borrowed $1.675 billion from Gemini and “is current on all loans outstanding.”