Genesis CEO steps down after billion-dollar loan to bankrupt 3AC

Last Updated: 19 August 2022

The bitcoin price crash and the snowball effect of problems that followed are still leaving their mark. The CEO of Genesis Trading is now stepping down.


Michael Moro is to leave Genesis and be succeeded by interim-CEO Derar Islim. A 20% round of redundancies has also been announced. After the bankruptcy of crypto-hedge fund, Three Arrows Capital (3AC), the company suffered significant losses.

The Asian arm of Genesis Trading had lent as much as $2.36 billion to the collapsed company. Collateral was deposited.

Earlier reports already showed that it was an ‘undercollateralised’ debt. It was said to be 20% of the total amount, which comes down to just under $500 million. The collateralised loan was “backed” by 17.4 million GBTC shares, 446,000 ETHE shares, 2.7 million AVAX, and 13.5 million NEAR.

Genesis did not necessarily have to worry. Its parent company is DCG, or the Digital Currency Group. With Grayscale in the portfolio with others, they could do with a dent.

Interim CEO

Now, the company will be headed by Derar Islim and the workforce will be cut with a round of layoffs. As a result, around 20% of all employees will be made redundant.

Islim has worked at Genesis since 2020 and is the current COO. He will succeed Moro until a permanent successor is found.

“The changes and investments we are announcing today reaffirm our commitment to operational excellence as we continue to expand our services to meet the needs of our customers.”

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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