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Crypto Lender Genesis struggles to survive, reduce headcount by 30%

crypto lender genesis fired its staff to prevent bankruptcy

Crypto lender Genesis boss Barry Silbert is doing everything to keep the wolf from the door.

The new year isn’t welcoming for Genesis, a crypto lending platform that is struggling to survive in the crypto bear market. It was hit hard after FTX filed for bankruptcy and froze crypto withdrawals to protect the liquidity of the platform.

To further absorb the FTX shock, Genesis laid off 30% of employees (nearly 60 positions) in early Jan 2023. It seems that Barry Silbert is doing everything to save Genesis from filing for bankruptcy but things aren’t as crystal clear as it looks.

Digital Capital Group, the parent company of Genesis is facing the heat from Gemini founder Winklevoss accusing Silbert of ‘bad faith stalling tactics’ over frozen funds.

According to him, Barry Silbert has misused the funds provided by Gemini and hasn’t been transparent in disclosing the information on resuming the withdrawals.

Gemini is fighting to get back $900 million worth of its client’s crypto assets which it has lent to Genesis for yield generation. Are we witnessing another collapse after FTX?

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