Crypto broker and lender Genesis Trading has laid off 30% of its staff as the firm struggles after several setbacks in 2022, the Wall Street Journal first reported on Thursday afternoon.
The company previously cut 20% of its 260-person workforce in August 2022.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” said a Genesis spokesperson in an email to MarketWatch. “These measures are part of our ongoing efforts to move our business forward.”
In November, Genesis had been trying to raise at least $1 billion from investors and had stated that it might need to file for bankruptcy if efforts fail, but denied imminent bankruptcy, telling MarketWatch that the company is having “constructive” conversations with creditors. Genesis had hired investment bank Moelis & Co. to explore potential options.
Genesis suffered losses after the collapse and bankruptcy of crypto exchange FTX in November, to which it had made loans. The company also lost on its involvement with crypto hedge fund Three Arrows Capital, which filed for bankruptcy last year. Genesis is now the latest firm in the crypto sector to struggle for survival, as the Federal Reserve boosted interest rates and the industry remains unregulated.
The firm hopes to refine its business plan for Genesis’ client offerings, which includes “reducing costs and driving efficiencies in all our business lines,” said Derar Islim, interim CEO of Genesis in a letter to clients on Wednesday.
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