June 25, 2024

Michael Moreau steps down as CEO of Genesis Trading

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Michael Moreau steps down as CEO of Genesis Trading

Over-the-counter cryptocurrency dealer Genesis Trading confirmed a reduction of 20% personnel, and also announced the resignation of Michael Moreau from the post of CEO of the company.

According to a statement from Genesis Trading, Michael MoreauMichael Moro will continue to advise the company while COO Derar Islim takes over as CEO on an interim basis. Former SAC Capital and Point72 President of Asset Management Tom Conheeny will advise Genesis Trading as a senior advisor. He will support Islim regarding the company's overall strategy and advise the company on trading, lending and risk management.

“We are aligning our organization with our strategic priorities,” the cryptocurrency dealer noted.

The company added that strategicPriorities include improving the quality of the business and overall infrastructure, including in areas such as risk, compliance and technology. Conhini's appointment and concerted efforts to reduce risk and compliance appear to follow the company's recent losses - Genesis Trading lent $2.36 billion to failed cryptocurrency hedge fund Three Arrows Capital (TAC).

Moro previously explained that for TAC loansrequired a weighted average margin of more than 80%, which Three Arrows Capital was unable to meet, which prompted Genesis Trading to sell its collateral. He added that Digital Currency Group, which owns the cryptocurrency lender, has made certain commitments to ensure capital is available to “manage and scale” its business in the future. In June it became known that Genesis Trading was demanding at least partial compensation for losses from TAC.