(Rejected) Grayscale Parent Company Digital Currency Group Cut 10% of its Workforce in a Restructuring

Grayscale and Genesis parent company Digital Currency Group (DCG) announced It has laid off 10% of its staff last week and carried out an internal restructuring of the company, according to Bloomberg.

Digital Currency Group (DCG), one of the representative giants of the crypto industry, is also hit hard by the Federal Reserve rate hike storm, and the cryptocurrency fell into a downturn this year.

After its chief operating officer Mark Murphy was promoted to president, DCG sent notices to staff affected by the restructuring last week, at least 66 employees left, according to the report.

Digital Currency Group runs Grayscale Investments, which manages the Grayscale Bitcoin Trust (GBTC).

A DCG spokesperson said: "We recently made a series of internal changes to position DCG for its next phase of growth, including a streamlining of our departments alongside several promotions on our leadership team,"

The company is currently tied with blockchain payments firm Ripple Labs Inc, Kraken Exchange, and Circle as one of the most profitable private crypto companies in the U.S. and the world.

DCG has publicly announced changes to several top executives. The company said Murphy became DCG's first president, Jenn Goodson was named chief administrative officer, Simon Koster was chief strategy officer, and Matt Kummell was senior vice president of operations. Amanda Cowie now oversees communications, marketing, and events.

In August, DCG subsidiary Genesis revealed that its chief executive, Michael Moro, was leaving and that the company would cut 20% of its 260 employees. The 20% layoffs equated to about 52 jobs.

In June, Genesis reported huge losses related to the bankruptcy of Three Arrows Capital. 

Since then, Matt Ballensweigm, head of global market insights at Genesis, Matt Ballensweigm, co-head of sales and trading, and Michael Patchen, chief risk officer who has only been on the job for three months, have all left. Genesis COO Derar Islim will serve as interim CEO while the company looks for a permanent replacement.

It is reported that Genesis is the largest creditor caught in the bankruptcy of Three Arrows Capital. DCG has assumed part of the responsibility and filed a $1.2 billion claim against Three Arrows Capital, which is in liquidation.

The crypto industry market has entered a period of cold winter, and the entire industry is facing a wave of layoffs.

Recently, the cryptocurrency exchange Coinbase, the crypto lending platform Celsius, and the largest bitcoin miner Core Scientific are all laying off and reorganizing in response to the global inflation outbreak and the Federal Reserve. The crypto winter period was caused by the rate hike storm.

In addition, Galaxy Digital, one of the largest crypto asset managers by market capitalization founded by billionaire Mike Novogratz, is planning to cut about 20% of its workforce globally.

According to a source, the layoffs have not yet begun and the final scale may be less than 20%, if it is 20%, about 75 employees will be affected