Sep 23, 2022
The crypto downturn since April of this year has wiped out about $2 trillion in value of the crypto industry, a meteoric fall from the peak of $2.9 trillion in November 2021. As the digital currency rout deepens, crypto companies have laid off hundreds and thousands of their employees. But the so-called crypto winter is now also hitting the top brass. Over the past few months, the industry has seen several high-profile releases.
Here are the five big names in the crypto market that have stepped down from their leadership positions in the past month, leaving a bigger void – and greater trepidation – among crypto investors.
Robert Bogucki leaves Galaxy Digital
Robert Bogucki, co-head of trading at New York-based digital asset and blockchain firm Galaxy Digital, reportedly left the company today to join the crypto arm of Brevan Howard investment firm BH Digital. , according to a report of Axios.
Bogucki joined Galaxy Digital in 2021 and worked alongside Jason Urban as Co-Head of Trading. He previously held chief executive positions at several banks, such as Barclays, Merill Lynch and Lehman Brothers, according to LinkedIn.
He’s not the only executive to leave Galaxy Digital. Michael Jordan, the company’s co-head of investments, is set to leave the company to launch a new crypto fund called DBA Crypto.
Galaxy Digital reported a net loss of $554.7 million for the second quarter; roughly triple its losses for the same period in 2021, Business Insider reported. This too reported preliminary assets under management of nearly $1.7 billion for the end of the second quarter, a decrease of 40% compared to the first quarter.
On August 17, Crypto broker Genesis Trading announced that the company’s CEO, Michael Moro, would step down. The company also cut its workforce by 20% from 260 people to cut costs, Bloomberg reported.
Jesse Powell, CEO of Kraken, resigns
Kraken co-founder and chief executive Jesse Powell has said he will step down on September 20. Powell, a digital currency pioneer, launched Kraken as a bitcoin exchange in 2011. Kraken is currently the fourth largest crypto exchange, after Binance, FTX, and Coinbase. , according at CoinMarketCap. While the company has managed to weather the storm like some of its leading peers in crypto, Powell has found himself in the hot seat over allegations he made insensitive comments about gender and race that sparked controversy. animated conversations within the company. The New York Times reported about internal corporate conflict and toxic male tech culture.
Powell thereafter caught on Twitter justifying, “When things were rosy, everyone got along”, a post that is now widely discussed. “When things started to look bleak, sensitivities and misalignment emerged. People focused on minor slights, first-world issues rather than our very big and important mission to help billions of people. ”
These conversations sparked a lot of debate in the business world and the CEO also acknowledged, “Honestly, I don’t consider myself an exceptional manager.”
Going forward, he remains Chairman of the Board and will focus on Kraken’s product development and advocacy related to crypto regulation. However, what deserves attention is that Powell is stepping down as CEO at a critical time when the crypto industry is still reeling from a major downturn that wiped out an estimated $2 trillion worth of value.
Steve Cohen stops investing in Radkl
On August 2, it was reported that Steve Cohen, hedge fund billionaire and owner of US multi-strategy hedge fund Point72 Asset Management, had exited his investment in crypto trading firm Radkl. He allegedly “lost faith in Radkl, and therefore canceled his investment in the crypto startup”, declared Bloomberg, adding that one-year-old Radkl has lost two managing directors this year, including Jim Greco, who resigned in January this year to become general partner of F9 Research, and Beatrice O’Carroll, who also recently resigned. . The squad listed on Radkl’s website is now down to four members.
In September 2021, Radkl made big titles when he received support from Cohen. According to statements made at the time, Cohen intended to “make investments in the crypto world through various avenues” without getting involved in the day-to-day operations of the startup itself. Nevertheless, Radkl, was popularly known as a “Cohen-backed crypto firm”, which gained media attention for innovating with its “computer-based, high-speed, and sophisticated trading models” for investing in cryptocurrencies. , digital assets and decentralized finance. However, after losing Cohen, Radkl potentially finds himself in a difficult position, according to Crunchbase reporta popular platform listing business information of public and private companies, which said: “Radkl has lost its sole investor.”
Michael Moro leaves Genesis Trading
On August 17, Crypto Broker Genesis Trading announcement that the company’s CEO, Michael Moro, would step down. The company has also reduced its workforce by 20% from 260 people to cut costs, reported Bloomberg.
Moro, who ran the Crypto brokerage arm of Digital Currency Group (DCG) for around seven years, may have fallen out of favor with the company following losses suffered from exposure to Three Arrows Capital (3AC). Genesis trading was hit hard after the collapse of 3AC. 3AC owed the trading company about $2.36 billion, which it failed to repay even after its margin call expired. To reduce losses, Moro said the trading company had to liquidate 3AC’s collateral, although it was unable to cover the loan amount. As a result, the DCG parent company had to assume certain responsibilities to ensure the continuity of the company’s operations.
The financial burden that 3AC has borne on DCG and recent weak financial reports may indicate why the company has decided to try a new breed of executives.
The leadership shakeup also saw Genesis hire several key executives, who the company hopes will “further strengthen its governance and position the company for the future.”
The firm, however, admitted that “it was not immune to the market drop and the damage to general sentiment.
Michael Saylor steps down as CEO
Another big upheaval in the crypto industry was Michael Saylor, co-founder and CEO of MicroStrategy, who stepped down as CEO last month. MicroStrategy, which provides business intelligence, mobile software and cloud-based services, is also investing in Bitcoin.
However, MicroStrategy’s total revenue fell 2.6% year-over-year to $122.07 million and missed analyst estimates of $123.25 million, as according to his Q2 results. The huge loss was mainly due to digital asset impairment charges.
Phong Le, chairman of the company, will assume the role of CEO and will also join the board of directors. Saylor believes that separating the roles of CEO and chairman will improve MSTR’s two main business strategies, namely acquiring bitcoin and growing its business analytics software business. As Saylor noted, “As the global adoption of digital assets accelerates, it becomes an ever-larger job, and I take comfort in increasing the reach of my advocacy efforts knowing that the Execution of the MicroStrategy business plan rests in the able hands of Phong, Andrew and the rest of our management team.