In a second round of layoffs in less than six months, crypto lender Origin will cut around 30% of its workforce, the wall street journal Reported on Thursday.
Citing “unprecedented market dislocation” following the collapse of major crypto exchange FTX, the lending arm of the cryptocurrency firm, Genesis Global Capital, halted customer withdrawals on November 16.
Genesis has also informed its customers that it needs more time to resolve the problems being faced by its lending arm.
“While we are committed to moving forward as quickly as possible, this is a very complex process that will take some additional time. We are confident we can reach a solution,” interim chief executive Derr Islam said in a letter. written. We will continue to update you on meaningful developments, including any updates in a timely manner.”
The sudden collapse of FTX, one of the world’s largest crypto exchanges, rocked the digital-asset market until the end of 2022 and created a liquidity crunch at Genesis.
Genesis previously said it had $175 million in exposure to FTX, prompting its parent Digital Currency Group to provide the firm with a $140 million capital infusion in November.
The crypto lender is seeking to raise fresh cash for its lending arm, although some investors have approached the lifeline, stressing the correlation between Origin and other related entities. Barry Silbert is part of the Digital Currency Group of bloomberg news Reported earlier.
High interest rates and concerns of an economic recession have put cryptocurrencies on hold as investors flee riskier assets, with recent bankruptcies in the space adding to the uncertainty.
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