The ramifications of the 3AC collapse continues to affect the market as crypto-trading firm, Genesis Global Trading laid off 30% more of its workforce on Thursday. The lay-offs come as the company “seeks to reduce costs and drive efficiencies” during a tough period for the crypto industry as a whole.
Approximately 115 people have been let go, with the sales and business development departments particularly affected. The layoffs follow a previous round in August, where Genesis cut 20% of their workforce from 260. The layoffs at Genesis, a subsidiary of Digital Currency Group (DCG), are largely driven by the broader market collapse, the wind-down of Three Arrows Capital (3AC), and now, due to FTX’s collapse.
In August, Genesis filed a $1.2 billion suit against 3AC. In November, the firm announced that their derivatives business, which had $175 million in funds, was lost as FTX declared bankruptcy.
Genesis and DCG are also involved in another dispute with crypto exchange, Gemini, who claim that DCG owes them over $900 million in funds. The money is, according to Gemini founder, Cameron Winklevoss, is owed to Gemini Earn clients.
In a statement, a spokesperson for Genesis said, “These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work to identify the best outcome for Genesis’s business, clients, and employees for the long term.”