• Genesis, a crypto lender, has laid off 30% of its workforce and may file for Chapter 11 bankruptcy.
• This move follows the previous layoff of 20% of its workforce in August 2022.
• If Genesis does decide to file for bankruptcy, it will be one of several crypto firms that have done so over the past 12 months.
Genesis, a crypto lender, has taken a drastic step to reduce costs and drive efficiencies in all of its businesses. The firm has laid off 30% of its workforce and may file for Chapter 11 bankruptcy. This follows the previous layoff of 20% of its workforce in August 2022, citing market conditions.
Genesis CEO Derar Islim said in a statement on Jan. 4 that the firm is committed to resolving its financial issues and is “moving as quickly as possible” in a “very complex process that will take some additional time.” The firm is reportedly evaluating a possible chapter 11 bankruptcy filing in cooperation with Moelis & Co. The goal of such a filing would be to “preserv[e] client assets and mov[e] the business forward,” according to a spokesperson.
If Genesis does decide to file for bankruptcy, it will be one of several crypto firms that have done so over the past 12 months. Various lending firms including Celsius and Voyager Digital filed for bankruptcy last summer. Other firms such as FTX and BlockFi have also filed for bankruptcy in recent months.
The news of Genesis’s possible bankruptcy filing is yet another sign of the difficult times that the crypto industry has been facing. The bear market of the past year has caused many crypto companies to downsize and restructure their businesses. It remains to be seen how Genesis will fare in the coming months.