Michael Moro, CEO of Digital Currency Group’s market maker and lending subsidiary Genesis Trading, has become the latest executive to step down from a leadership role at a crypto company amid the market downturn.
In a Wednesday announcement, Genesis said Moro will leave his position as the company’s CEO, a role in which he worked since April 2016. According to Moro, he will support Genesis’ “next phase of growth” in an advisory role as the firm transitions to new leadership.
7/ Since our founding in 2013, Genesis has successfully navigated periods of intense market volatility. Looking ahead, we will continue to support the needs of our clients and counterparties as we enter the next phase of the industry’s evolution.
— Michael Moro (@michaelmoro) July 6, 2022
Chief operating officer Derar Islim will act as interim CEO as Genesis’ board searches for a new leader. Genesis announced the hiring of a new chief risk officer, chief compliance officer, chief technology officer, chief legal officer and chief financial officer in an effort to bulk up the “company’s overall risk management.” Bloomberg reported on Wednesday that the trading firm was also cutting its 260-person workforce by 20% in an effort to eliminate costs.
It’s unclear if Genesis’ strategy was influenced by events surrounding the crypto market downturn. The trading firm confirmed in July that it had investment exposure to Three Arrows Capital, the company tied to Terra and subsequently ordered into liquidation by a British court. Digital Currency Group said it had assumed some of the liability owed by Three Arrows to ensure Genesis had adequate capital for its operations.
Related: Contagion: Genesis faces huge losses, BlockFi’s $1B loan, Celsius’s risky model
Amid a volatile crypto market, many fintech firms have announced changes to their leadership. On July 1, Ignite CEO Peng Zhong said he would be leaving after having worked at the firm since 2015. Michael Saylor announced on Aug. 2 that he would step down as the CEO of MicroStrategy, the business intelligence firm that has invested billions of dollars into Bitcoin (BTC) since 2020.