Crypto Lender Genesis lays off 30% of staff, report

Catch up fast: In November, Genesis announced it was suspending withdrawals for depositors who had contributed funds to its lending unit, blaming the decision on repercussions from the FTX bankruptcy.

• Genesis has provided four updates to clients since FTX collapsed, none of which have addressed when withdrawals might be re-opened.
• The company, via an outside spokesperson at strategic advisor FGS Global, confirmed that deposits remain frozen.

What they're saying: In a Wednesday update to clients, Derar Islim, interim CEO, wrote, "We believe we can arrive at a solution. We will continue to give you updates on meaningful developments, including any updates on timing."

Of note: Also yesterday, a decision in the bankruptcy case of fellow crypto lender Celsius could be making Genesis depositors more anxious.

• The judge there found that depositor assets belonged to the estate (that is, Celsius), and could be used to fund continued operations.

By the numbers: No specific number of employees has been reported with respect to the Genesis layoff. In Aug. 2022, the WSJ reported that it had let go of 20% from a staff of 260, which would have brought it to around 200 employees.

• If staffing stayed level since August, a 30% cut now would mean roughly 70 additional people.