Crypto lender Genesis Global Trading Inc has laid off 30% of its staff, around 60 positions, and is considering filing for bankruptcy, according to a report in The Wall Street Journal. citing people familiar with the matter.
The layoffs weren’t confined to one department and were across the company, the report said, adding Genesis is working with investment bank Moelis & Co to evaluate its options for the future, including a potential Chapter 11 filing.
A Genesis spokeswoman said that the firm is working with its advisers “to preserve client assets and move the business forward.”
READ: Genesis acting in ‘bad faith stall tactics’ over withheld customer funds, says Winklevoss twin
This is the latest turn in an ever-evolving tale of chaos in the crypto industry which has seen a number of high profile names go to the wall together with legal ramifications for some of its key players.
Genesis itself suffered steep losses from loans it supplied to Alameda Research and crypto hedge fund Three Arrows Capital both of which filed for bankruptcy last year.
This would be the second cull of staff following on from last summer when the group shed 20% of its 260 strong workforce and its CEO Michael Moro stepped down, after Three Arrows was forced to liquidate.
Contact Jeremy at jeremy@proactiveinvestors.com