It’s rumored that NASDAQ once owned bitcoin seized from dark web marketplace Silk Road and, by extension, customers of disgraced Japanese crypto exchange Mt. Gox.

The story begins in December 2014, when Barry Silbert’s Bitcoin Investment Trust spent less than $17 million to acquire 48,000 bitcoins seized from the Silk Road at a US Marshals auction.

That trust would later morph into the Grayscale Bitcoin Trust (GBTC), but in late 2015, there was a time when NASDAQ itself might have controlled those bitcoins.

To understand the NASDAQ connection, we need to look back into Silbert’s career, specifically to 2004 when he founded SecondMarket.

SecondMarket originally gained popularity before the creation of bitcoin as a way to acquire employees’ equity in non-public companies via a secondary market-like platform (hence, ‘SecondMarket’). It diversified considerably over the next nine years and by September 2013, Silbert had launched Bitcoin Investment Trust, a bitcoin-only fund for high-net-worth individuals.

The month after the trust was launched, the FBI shut down Ross Ulbricht’s Silk Road and seized its massive trove of tens of thousands of bitcoin, placing it into the custody of the US Marshals.

Barely five months later, Mark Karpelès’ Japanese-American Mt. Gox bitcoin exchange declared bankruptcy and less than a year after that, Bitcoin Investment Trust purchased the government-seized bitcoin from the Silk Road.

The following year, NASDAQ acquired SecondMarket, Bitcoin Investment Trust, and the bitcoin itself, which today would be worth somewhere in the region of $3 billion.

Silbert’s 175X gain versus customers’ 0X gain

Although a select few Mt. Gox victims have received a small number of repayments from the bankruptcy, most customers still haven’t received anything. Indeed, its bankruptcy has deprived them of their assets for over a decade. Similarly, the US government simply seized Silk Road bitcoin outright from operators and customers, rendering them an equal return of $0.

Silbert’s fund — in contrast to Silk Road customers who will never be refunded, or Mt. Gox victims who still await their refunds — has enjoyed a 175X gain on the bitcoin held since its December 2014 US Marshals auction win.

Some people speculate that NASDAQ was particularly interested in its bitcoin holdings when making the 2015 acquisition while others are unclear whether SecondMarket still owned rights to any US Marshals-purchased bitcoin at that point.

Ultimately, it is unclear whether SecondMarket, its Bitcoin Investment Trust, or accredited investors of the Bitcoin Investment Trust became the ultimate beneficial owner(s) of the US Marshals auctioned bitcoin. 

Similarly, with SecondMarket, Mt. Gox, and Grayscale remaining private companies since their inception, there are limited public filings to track the ownership of SecondMarket’s auction-acquired bitcoin.

Barry Silbert is one of bitcoin’s earliest investors

In any event, there are theories that connect Barry Silbert to even more US government-seized bitcoin. For example, Cumberland of DRW is widely rumored to have won a third US Marshals-auctioned lot of 27,000 bitcoin. Cumberland has a known relationship with Barry Silbert’s Digital Currency Group, which was a sister company of SecondMarket.

Some blockchain observers believe that some of those 27,000 bitcoins ended up at Barry Silbert’s Grayscale, which had a deep relationship with Digital Currency Group’s Genesis and Tyler and Cameron Winklevoss’ Gemini via its doomed Gemini Earn program.

Read more: Barry Silbert’s Grayscale wants GBTC to commingle bitcoin ‘from time to time’

In the end, it is not difficult to trace bitcoin on the blockchain. However, it’s almost impossible to trace bitcoin whose ownership changes via paper contract within private companies. In the case of Bitcoin Investment Trust (now GBTC) bitcoin and other US Marshals lots, ownership rarely changed via on-chain transfer. As is often the case with private companies and non-public trusts, ownership changed frequently by signing paper contracts.

When someone buys a share of GBTC, the seller doesn’t transfer bitcoin on-chain. Nevertheless, over $160 million worth of bitcoin truly changes ownership every day via off-blockchain GBTC trades. Similarly, tens of billions of dollars of crypto assets change hands every day off-blockchain across the world’s crypto exchanges. This frustrates the work of on-chain sleuths.

Tracing government-seized bitcoin to NASDAQ itself

Tracking the history of Mt. Gox and Silk Road bitcoin from US Marshals auctions is certainly illuminating but it’s only a small part of the larger story. The blockchain does show that NASDAQ ended up managing — whether on its own behalf of on behalf of customers — some US government-seized bitcoin with ties to Silbert’s prescient purchases over a decade ago.

Similarly, US Marshals bitcoin auctions certainly link entities like Grayscale, Cumberland, Genesis, Digital Currency Group, and Gemini.

Every $1,000 of bitcoin one decade ago is now worth $100,000 and for anyone lucky to have had the capital to bid on Silk Road bitcoin auctions, and the wisdom to have never sold, the appreciation is certainly life-changing. The gains from these early auctions have capitalized some of the largest crypto companies in existence today.

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Under-fire Digital Currency Group founder Barry Silbert has apparently deleted a raft of his old tweets.

According to his X (formerly Twitter) account, Silbert signed up in October 2011, however, at the time of writing, his timeline shows no tweets or replies older than January 5 this year.

Luckily for die-hard Silbert fans, X user Pledditor has screenshotted some of his “greatest hits.”

Read more: Former DCG advisor Larry Summers on list of Jeffrey Epstein’s ‘Harvard friends’

Among the messages saved by Pledditor is a classic in which Silbert brands himself a “complete and total professional failure,” and one in which he advises Dogecoin holders to convert it to bitcoin.

It’s not clear what prompted Silbert’s social media cull but he’s currently taking social media flak after nearly $580 million in outflows from Grayscale’s Bitcoin Trust (GBTC) late last week was blamed for a dip in bitcoin’s price. GBTC converted into an ETF late last week.

Bitcoin hit a two-year high of more than $49,000 on Thursday, however by Friday it had once again dipped below $43,000.

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The New York Attorney General (NYAG) has filed a lawsuit against Digital Currency Group (DCG) and its CEO Barry Silbert, Genesis and its ex-CEO Michael Moro, and Gemini. The lawsuit alleges that these three companies defrauded 230,000 investors, including about 29,000 New York residents, out of more than $1 billion.

According to the complaint, Silbert and the other defendants lied and schemed to defraud Gemini Earn stakeholders, especially regarding the financial condition of its primary partner, Genesis.

The NYAG alleges that Gemini misled investors about Gemini Earn, an investment program operated in collaboration with DCG subsidiary Genesis Global Capital. Gemini promoted Gemini Earn as a low-risk investment yielding ultra-high interest rates.

Unfortunately, despite these claims, Gemini Earn failed, losing over $1 billion of its customers’ money. Genesis is also bankrupt. 

At one point, Sam Bankman-Fried’s Alameda was the borrower for nearly 60% of all outstanding loans from Genesis. Even more breathtaking, Alameda collateralized most of those loans with FTT tokens.

The NYAG alleges that DCG, Silbert, Genesis, Moro, and Gemini all lied about the risks of this failed program. They also withheld material information about Gemini Earn’s massive risks. According to the suit, all of the defendants illegally concealed massive losses from investors and Gemini Earn customers.

A rough timeline of lies and illegal activities

February 2, 2021: Gemini announces the launch of Gemini Earn.

June 17, 2022: Then-CEO of Genesis Trading Michael Moro says Genesis Global Capital is working on mitigating losses due to a “large counterparty” that failed to meet a margin call. He falsely claims that no client funds are impacted.

June 29, 2022: Genesis Global Capital confirms “hundreds of millions” in exposure to the now-bankrupt Three Arrows Capital. The co-founder of Three Arrows Capital is currently in jail.

July 6, 2022: Michael Moro confirms a significant loan to “a large counterparty who failed to meet a margin call.” He said Genesis liquidated the posted collateral to hedge its downside. He also confirmed that Genesis’ parent company, DCG, would assume most of the liability to protect Genesis’ finances. That counterparty, Three Arrows Capital, subsequently filed for bankruptcy protection during the fallout from Do Kwon’s Terra/LUNA meltdown.

November 10, 2022: Genesis Global Capital reveals that its derivatives wing has $175 million of funds locked within FTX.

November 11, 2022: DCG sends a $140 million equity infusion to Genesis.

November 16, 2022: Genesis Global Capital freezes redemptions, impacting Gemini Earn customers’ ability to withdraw their funds.

November 16, 2022: Genesis Global Capital reveals to Gemini that it sold 30.9 million GBTC shares at $9.20 per share. The net proceeds were applied to the amount it owed to Gemini Earn.

November 17, 2022: Circle confirms “minimal” exposure to Genesis through its Circle Yield product — $2.6 million in outstanding loans that Circle says are well-collateralized.

November 22, 2022: Barry Silbert sends a letter to DCG shareholders sharing the details of a $1.1 billion promissory note issued to Genesis after the Three Arrows Capital meltdown.

Read more: Genesis pressure mounts as Cameron Winklevoss threatens Barry Silbert

January 8, 2023: Gemini formally ends its Gemini Earn program.

January 10, 2023: Gemini co-founder Cameron Winklevoss tweets an open letter accusing DCG and Genesis Global Capital of making misleading statements to Gemini and Gemini Earn investors. He calls for the ousting of CEO Barry Silbert.

January 10, 2023: Gemini and its co-founders file a response to a lawsuit filed by Brenda Picha and Max Hastings, two Gemini Earn users who lost funds due to the meltdown in the relationship between Gemini Earn and Genesis Global Capital. In the response, Gemini alleges, “Due to events beyond defendants’ control, Genesis has wrongfully refused to return Plaintiffs’ assets.”

January 12, 2023: The SEC announces charges against Genesis Global Capital and Gemini Trust Company for “the unregistered offer and sale of securities to retail investors” through Gemini Earn.

January 19, 2023: Genesis’ lending arm files for Chapter 11 bankruptcy in the Southern District of New York.

February 6, 2023: DCG announces a tentative settlement between Genesis and its creditors.

April 25, 2023: DCG publishes a statement on Gemini’s motion for mediation, claiming that “a group of Genesis Capital’s creditors have reneged” on an earlier settlement. Genesis creditors reject a proposed bankruptcy settlement.

May 9, 2023: DCG publishes a statement on ongoing mediation in which it says it is committed to pursuing a “fair” outcome for all parties involved.

July 7, 2023: Gemini sues DCG for fraudulently covering up its Three Arrows Capital-induced insolvency

August 10, 2023: DCG files to dismiss Gemini’s lawsuit.

August 29, 2023: DCG publishes a statement on a tentative deal between Genesis and the Unsecured Creditors Committee.

September 13, 2023: DCG publishes an open letter that estimates a 70-90% return for all unsecured creditors and a 95-110% return for Gemini Earn users.

September 28, 2023: Sources say the Winklevoss twins withdrew $280 million from Genesis before it collapsed.

October 19, 2023: The NYAG sues DCG, Barry Silbert, Genesis, Michael Moro, and Gemini, alleging various frauds that cost investors over $1 billion.

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Gemini co-founder Cameron Winklevoss has threatened to wage legal war against Digital Currency Group (DCG) and its chief Barry Silbert unless he agrees to settle the debt of its subsidiary, Genesis Global Trading, with Gemini Earn’s customers.

In an open letter posted on social media on Tuesday, Winklevoss offered a “best and final offer” five-year repayment scheme totaling $1.5 billion — and accused Silbert of committing fraud by knowingly lying to investors. According to Winklevoss, Silbert pretended that DCG subsidiary Genesis absorbed the $1.2 billion in losses after the collapse of Three Arrows Capital (3AC).

What’s more, the letter accused Silbert of pretending to “go through the motions of negotiating a deal” to try and “rope a dope creditors and position DCG to litigate the promissory note’s viability in court for many years to come.”

• Genesis owes creditors up to $3.3 billion, of which $1.2 billion is owed to Gemini Earn users who had their funds deposited to 3AC by Genesis.
• Earlier this year, Genesis filed for voluntary Chapter 11 bankruptcy.
• Creditors of Genesis involved in the bankruptcy proceedings have so far not come to agreement on the repayment of their debts.

Winklevoss wrote that Silbert has frantically tried to raise the $630 million that DCG owes Genesis, since it likely faces bankruptcy if it can’t. Silbert is accused of entering mediation with Genesis to buy time while he comes up with the funds – but has abused the mediation process because he never intends to settle.

“I write to inform you that your games are over,” Winklevoss concludes. He submitted what he called a “fair and reasonable” proposal to put the entire ordeal to bed, but gave a tight deadline that’s swiftly approaching.

If Silbert doesn’t agree to the plan by 4pm ET on July 6, Winklevoss will:

• File a lawsuit against DCG and Silbert outlining how the chief personally hid Genesis’ insolvency, thus providing ‘blueprint’ litigation for Gemini Earn users to file their own cases.
• File a turnover motion, effectively putting DCG into default and demanding immediate payment of the $630 million.
• Advance a non-consensual plan (providing immediate distribution of funds to creditors and Earn users).

Additionally, Winklevoss has threatened to demand that the Unsecured Creditor Committee (UCC) file its own lawsuit and take depositions “related to their investigation into the various intercompany loans and transactions between DCG and Genesis entities.”

Read more: DCG misses $600M payment to Genesis as Gemini seeks resolution

Not the first time Winklevoss threatens Silbert with lawsuit

Gemini loaned $900 million from Gemini Earn users to Genesis. Gemini customers were promised up to 8% interest rates on their investment which was meant to be paid by Genesis to Gemini users.

Allegedly, Genesis used the loaned money to trade Grayscale Bitcoin Trust (GBT) – also owned by DCG – with 3AC, whereby Genesis loaned 3AC capital against newly issued shares of the GBT. 3AC then used its borrowed capital from Genesis to buy more GBT shares.

This circular trading activity was repeated to the extent of allegedly helping inflate GBT at high premiums against bitcoin. But eventually, GBT traded at a discount to bitcoin and 3AC was left with a loss of $1.2 billion. 3AC’s blow-up may have actually contributed to GBT’s continued price crash with its current discount to NAV trailing at -30%.

Right before Genesis filed for Chapter 11 bankruptcy, Winklevoss accused Silbert of ignoring his attempts to settle the amount owed to Gemini Earn users — calling his behavior “bad faith stall tactics.”

Silbert’s empire of companies under the DCG umbrella was estimated to be worth up to $50 billion in crypto’s market peak of 2021. However, its major trading firm Genesis suffered major losses with the collapse of 3AC and FTX.FTX is also currently pursuing Genesis for up to $4 billion in loans. The SEC is also suing both Genesis and Gemini for offering clients unregistered securities.

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It’s been alleged that paperwork filed by Digital Currency Group (DCG) and its subsidiaries reveals concerning details about the personal finances of founder Barry Silbert.

According to financial data analyst DataFinnovation, the documents reveal a little-known asset management portfolio company with only one significant client — rumored to be Silbert. Documents also apparently disclose a curious sum that Gemini Earn received from selling collateral from loans made to Genesis, a DCG portfolio company.

In short, it’s possible that a portfolio company of Silbert’s DCG — whose sole high-net-worth client was likely Silbert himself — managed billions of dollars of personal fortune, lent Genesis over $1 billion, and preferentially got over $1 billion back amid the collapse of Three Arrows Capital (3AC).

Protos hasn’t been able to independently confirm that the high-net-worth client is, in fact, Barry Silbert. Nor has Protos corroborated the other allegations by DataFinnovation — in particular, the allegation that Silbert preferentially withdrew personal funds ahead of other DCG stakeholders amid the collapse of 3AC.

We have contacted DCG to attempt to verify these claims and will update when we receive a response.

Barry Silbert and his personal empire within DCG

Genesis Trading filed for Chapter 11 bankruptcy in January 2023. Bankruptcy filings revealed $2.6 billion in debt. Although outstanding loans had declined from $2.8 billion in its 2022 third-quarter filing, it was still struggling after the 3AC bankruptcy and the FTX meltdown.

DCG did its best to rescue its portfolio company Genesis after the 3AC bankruptcy. The $1.1 billion promissory note representing DCG’s attempt to absorb Genesis’ debt became widely publicized. It also made $575 million in separate loans to Genesis.

Genesis Trading also owed a lot of money to Gemini Earn, leading to some back-and-forth between Silbert and Gemini’s Winklevoss billionaire twins, Tyler and Cameron. The often-heated dispute included the Winklevoss twins demanding that DCG send $630 million to the Genesis bankruptcy estate to avoid default, and repeated threats to sue.

Gemini Earn also liquidated $280 million in collateral, which didn’t come close to covering the $750-900 million that Genesis Trading owed Gemini Earn.

Read more: DCG misses $600M payment to Genesis as Gemini seeks resolution

The bankruptcy filings include a list titled Digital Currency and USD Payables. This list showed more than 250 million Gemini Dollars (GUSD) owed to an unnamed creditor. Obviously, not many entities besides Gemini use GUSD.

What is HQ Digital

One DCG subsidiary named HQ Digital has flown under the radar with only one ‘high-net-worth individual as a client. It’s managed more than $3.6 billion in assets for its client and $8 million for three smaller clients. The filing indicates Barry Silbert and DCG have ownership stakes in HQ Digital.

Founded in 2021, HQ Digital shares an address with DCG headquarters. It borrowed $1 billion from Genesis Global in early 2022 and paid it back when DCG issued the promissory note to rescue Genesis Trading. Filings indicate it has an HQ Founders Liquidity Fund, adding more circumstantial evidence that Barry Silbert might be its sole ‘high-net-worth individual’ client. It also previously used the now-defunct Silicon Valley Bank (SVB) to hold assets.

As more details emerge concerning bankruptcy and regulatory filings, analysts like DataFinnovation have accused Digital Currency Group of attempting to muddy the waters around HQ Digital’s curious management of Barry Silbert’s personal assets and DCG portfolio companies’ assets.

Allegations of misbehavior by the DCG executive team

DataFinnovation has also floated the possible explanation that members of DCG’s senior management — Silbert included — might have personally funded bad deals and were attempting to cover up their activities. In 2016, the SEC settled charges that the Grayscale Bitcoin Trust (GBTC) and Genesis — which had served as a GBTC broker — violated its Regulation M. Since then, the GBTC premium has fallen as low as 30%.

Unlike many analysts, DataFinnovation looked closely at regulatory filings and dug up some interesting details regarding a previously unreported entity, HQ Digital. Gemini Earn sold off collateral from loans, possibly netting barely one-third of the money it had loaned to Genesis Trading.

Assets managed by HQ Digital for the benefit of Barry Silbert personally might have close ties to the tangled web coming to light with the DCG/Gemini/Genesis bankruptcy entanglement.

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Barry Silbert’s Digital Currency Group (DCG) has suspended shareholder payouts as it struggles to ride out a “wave of unprecedented fraud and criminal behavior” plaguing the industry.

As reported by CoinDesk, in a letter to shareholders on Tuesday, Silbert explained that the company was “focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity.”

As such, he continued, the firm’s quarterly shareholder dividend distribution will be halted “until further notice.”

The challenging conditions currently facing DCG have, according to Silbert, been brought about in part by what he calls “a wave of unprecedented fraud and criminal behavior, unlike anything I’ve seen in my career,” (our emphasis).

As such, he warns, the industry has a lot of hard work to do to re-establish its credibility and reputation, which have been all but destroyed.

Is Silbert himself to blame for DCG dividend freeze?

The problems facing DCG have been exacerbated by issues with its affiliate Genesis in the wake of the collapse of crypto exchange FTX in November.

Protos reported in December that Genesis Trading and DCG owed over $900 million to the Winklevoss twins’ Gemini Earn, as the contagion from FTX’s implosion continued to spread.

The company has also had to contend with the loss of senior advisor Larry Summers. Former Harvard professor Summers had worked for DCG since 2016 but, as reported by Protos earlier this month, he is reported to have cut ties with the conglomerate “several months ago.”

The exact circumstances of his departure are unknown but he previously drew criticism for his comments on FTX that saw him compare the exchange to ENRON.

Read more: CFTC alleges Gemini cover-up: Execs funded market manipulation

It’s also been claimed that at least some of the firm’s problems have been caused by Silbert himself, specifically his management approach.

International Business Times reports that Digital Assets Data founder Mike Alfred said:

“The organization got so big. It was almost like a victim of its own success. Barry was no longer able to manage the risk management himself at every subsidiary.”

For his part, however, Silbert states in the letter that he believes, “DCG will emerge from this year a stronger company than ever before,” (our emphasis).

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On Monday, Gemini co-founder Cameron Winklevoss published an open letter to fellow billionaire Barry Silbert, the chief exec of Digital Currency Group (DCG), explaining Gemini’s side of an ongoing dispute with DCG and its subsidiary, Genesis Global Trading.

In the letter, Winklevoss gave Silbert a short deadline to publicly commit to resolving the situation that led to Gemini Earn suspending withdrawals. The famous twin accused Silbert of ignoring previous attempts to work together, claiming the DCG chief hoped that it would “just magically go away.”

He claims Silbert agreed to meet to discuss a proposal and then never followed through when Gemini submitted two. Now, Winklevoss demands that Silbert commit to finding common ground by January 8.

Details of Cameron Winklevoss’ letter

Genesis Trading currently owes Gemini $900 million through its previous partnership with Gemini Earn. Winklevoss says the money belongs to Gemini Earn’s depositors — who are “not just numbers in a spreadsheet.”

Winklevoss claimed that DCG currently owes Genesis — its own subsidiary — $1.675 billion. He accused Silbert of using that money to buy back shares, fund illiquid investments, and boost Grayscale funds’ net asset value (NAV) instead of paying off third-party debt.

For his part, Silbert has denied that DCG borrowed $1.675 billion specifically. However, he didn’t contest that DCG does owe Genesis money. He insists that DCG is current on all its interest payment obligations.

Read more: Genesis slashes CEO and 20% of staff despite Barry Silbert rescue act

Silbert also claims that DCG delivered a proposal to Genesis and Gemini’s advisors on December 29 and hasn’t received a response.

Some of Grayscale’s funds have been trading at a steep discount compared to their NAV. Its second-largest, the Grayscale Ethereum Trust (ETHE), recently traded down to a 60% discount-to-NAV. Grayscale’s largest trust, the Grayscale Bitcoin Trust (GBTC), traded as deep as a 50% discount to its NAV.

Speculators are concerned that Grayscale’s funds held in trust might get liquidated, potentially causing already vulnerable markets to crash even lower. Even Three Arrows Capital (3AC) co-founder Su Zhu took a swipe at Gemini over the holiday season, accusing it of deliberately making it more difficult for users to sue. For reference, Genesis Trading has notably filed a $1.2 billion claim in 3AC’s bankruptcy case.

Gemini has formed a creditors’ group as part of its efforts to resolve the issue with Genesis. It hired the law firm Kirkland & Ellis and onboarded investment banking firm Houlihan Lokey as a financial advisor.

Lawsuits threaten to escalate disputes in court

It could very well be that, on its own, the threats in Winklevoss’ letter won’t be enough. However, some Gemini Earn users have taken matters into their own hands. Lead plaintiffs have filed a class action lawsuit against Genesis and DCG, alleging that DCG attempted to actually hide Genesis’ insolvency.

It was previously reported that DCG quietly bought the debt that 3AC owed to Genesis with a $1.1 billion promissory note due by 2033.

A separate lawsuit alleges that Gemini failed to register Gemini Earn’s interest-bearing accounts as securities. Similar interest-bearing accounts by companies like BlockFi and Voyager were found by US regulators to be securities.

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Crypto lender and over-the-counter dealer Genesis is laying off 20% of its workforce, while CEO Michael Moro is also stepping down.

In a press release, Genesis revealed that COO Derar Islim will serve as interim CEO, and announced a new board member, Chief Risk Officer, Chief Compliance Officer, and Chief Technology Officer.

Genesis has been struggling since the collapse of Three Arrows Capital (3AC), the hedge fund formerly managed by Kyle Davies and Su Zhu. Genesis was one of 3AC’s largest creditors but the fund entered bankruptcy in early July.

And things could have been worse. Genesis was in very real danger of insolvency until Genesis’ parent company, Barry Silbert’s Digital Currency Group, stepped in to take over Genesis’ 3AC losses.

Filings in a Singaporean court indicate that Genesis’ Asia-Pacific division made a loan of $2.36 billion to 3AC. Genesis has filed at least $1.2 billion worth of claims against 3AC.

Moro said that Genesis sold crypto collateral and protected its downside when 3AC failed to meet a margin call. The loan required a seemingly conservative weighted-average margin of 80%. However, Moro didn’t reveal any details about the loan amount or the size of Genesis’ losses.

Read more: Three Arrows Capital liquidated by multiple lenders after ghosting

In June 2022, Moro mentioned that Genesis’ risk management department was mitigating losses with a large counterparty — probably 3AC. At that time, he claimed that no client funds were affected.

Despite being 3AC’s biggest creditor, Digital Currency Group claimed its balance sheet remained strong in a statement to Bloomberg.

Genesis was also stung by declines in other digital asset markets, including the TerraUSD meltdown in May 2022.

Read more: Crypto investors sue Binance US over marketing Terra’s UST as ‘safe’

Michael Moro led Genesis crypto from 2015

Michael Moro has served as the COO at Genesis since Digital Currency Group rebranded the trading division of SecondMarket in 2015. Moro previously acted as VP and Director of SecondMarket. Although he’s departed as Genesis CEO, he’ll remain as advisor.

Moro previously served as a research manager at Pluris Valuation Advisors and an associate at banking giant Citi.

Silbert, meanwhile, founded Digital Currency Group by bringing together five companies, including Genesis Trading. Grayscale, the trust manager behind the world’s largest bitcoin trust, GBTC, anchors Silbert’s conglomerate. Digital Currency Group has subsequently invested in many well-known crypto companies like BitPay and Chainalysis.

Although Genesis claims that its losses from 3AC and TerraUSD are survivable, Moro apparently decided that it was time to step aside. With one in every five workers at Genesis laid off and its leadership team overhauled completely, the company’s future might look entirely different from its past.

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