The crypto lending and custody platform Genesis waved another executive goodbye on Wednesday as co-Head of Sales Matt Ballensweig stepped down.
That’s the second executive departure from Genesis after its CEO, and the next in a long list of crypto industry higher-ups this quarter.
Yet Another Departure in Crypto
In a Twitter thread on Wednesday, Ballenswelg explained that he was formally leaving his post after over 5 years, and will be transitioning his responsibilities to select colleagues. In the short term, he will stick around as an advisor.
“We built an 8-person company huddled in a small office in NYC back in 2017 to a sell-side trading behemoth doing billions in volumes in multiple countries today,” he said.
The former sales head said he would be staying within the crypto ecosystem to help facilitate the next industry bull cycle.
The company’s former CEO departed in August as part of a broader leadership shuffle. Ballensweig said that despite the infrastructure changes, Genesis will continue to be a big name in the industry. “We built our franchise to withstand change and challenge and we are doing just that,” he added.
Genesis primarily serves institutional clients with lending and OTC trading – including other crypto companies which service retail customers. Some firms will engage in “rehypothecation” whereby they may re-lend some of their customer’s assets to Genesis to generate returns.
Change in the Ecosystem
One such bankrupt firm – Celsius – saw its CEO Alex Mashinsky step down on Tuesday due to becoming an “increasing distraction” at the company. Mashinsky reportedly made a series of large trades on bad information months before the company collapsed.
Crypto mining firm North Compute also filed for bankruptcy this month, after CEO Dave Perrill had resigned in September.
Genesis did not have a similar fallout, but was forced to cut its workforce by 20% in August among many crypto firms. It also held exposure to the defunct crypto hedge fund Three Arrows Capital, and has filed a $1.2 billion liquidation request against the firm.
Just this week, crypto Sam-Bankman Fried said farewell to the former FTX U.S. President Brett Harrison. Like Genesis, there’s yet no indication to suggest that the resignation is anything besides an executive reshuffling.