Crypto startup Genesis has fired 30 percent of its staff in a second wave of layoffs.
Sources said job cuts are taking place as pressure mounts on crypto industry executives to slash expenses in the wake of a recession.
Following the collapse of the main exchange FTX in September, several firms have suffered from dwindling investor interest in cryptocurrency.
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Recently, crypto-focused bank Silvergate Capital announced a 40 percent reduction in the workforce.
A company spokesperson said: “As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally.”
It was reported that Genesis is considering filing for Chapter 11 bankruptcy.
The company is evaluating its alternatives with the help of investment bank Moelis.
New York-based Genesis also fired 20 percent of its workers in August.
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Sources said the firm now has 145 employees, down from 260 before the two rounds of job cuts.
Genesis Global Capital, the crypto firm’s lending arm, blocked customer withdrawals in November, claiming “unprecedented market dislocation” caused by the bankruptcy of major crypto exchange FTX.
Genesis said in a letter to clients that it was working on a solution to the lending crisis but would require additional time.
Higher interest rates and fears of an economic slump have added to the pressure on the crypto business, as investors abandon riskier assets.
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