DCG-guilty crypto exchange Luno replaces CEO, seeks outside investment
DCG, Luno’s parent company, has been struggling with the ongoing fallout from last year’s drop in token prices and the collapse of FTX.
Rafael Henrique | Sopa pictures | Lightrocket via Getty Images
LONDON — The CEO of cryptocurrency exchange Luno is stepping aside and handing the reins to its chief operating officer, the company announced Wednesday.
It comes as Luno’s parent company, crypto-focused venture capital firm Digital Currency Group, continues to reel from turmoil in the crypto market. Luno has also recently laid off 35% of its global workforce.
Marcus Swanepoel, a South African former banker who founded Luno in 2013 with the goal of bringing crypto to the masses, will step down as CEO after 10 years to become executive chairman, the company said in a press release on Wednesday.
James Lanigan, Luno’s CEO, will take over the reins as Luno’s new CEO. Lanigan joined Luno in 2018 and previously served as Chief Marketing Officer for restaurant reservation platform TheFork, formerly Bookatable.
As executive chairman, Swanepoel will spend less time on the day-to-day operations of Luno, instead working with Lanigan and management to guide strategy and focus on growing Luno’s investor base, the company said.
In a statement, Swanepoel said he was “excited for the next chapter as we continue to put the power of crypto in everyone’s hands.”
“The opportunity for crypto is bigger and brighter than ever, and James is a seasoned operator and an outstanding leader with a track record of success across all aspects of running a truly global fintech business.”
Luno said it has also hired investment banking firm Canaccord Genuity Group to help it raise new investment from outside investors. It is the first time the company has opened up to new investors since it was acquired by DCG in 2020.
Luno will aim to raise money from investors other than DCG to help the company expand internationally, gain market share and prepare for an eventual IPO, Luno said in the press release.
DCG, Luno’s parent company, has been struggling with the ongoing fallout from last year’s plunge in token prices and the collapse of FTX, the controversial exchange whose failure in November triggered a series of industry bankruptcies.
Within DCG’s sprawling portfolio of crypto holdings, digital currency lender Genesis filed for bankruptcy protection owing creditors at least $3 billion, while Grayscale, the largest crypto asset management firm, faces questions about its exposure to FTX and the growing discount at which the bitcoin mutual fund trades. in relation to the underlying asset.
CoinDesk, the DCG-owned crypto news outlet, hired investment bank Lazard to explore a potential sale, CNBC previously reported.
A DCG spokesperson insisted Swanepoel’s job move was unrelated to the difficulties faced by Luno’s parent company and had been in the works for 12 months. The transition from CEO to executive chairman is a “common path for founding CEOs,” the spokesperson added.
“Having invested in Luno’s seed round in 2014 followed by an acquisition in 2020, we want to thank Marcus for his dynamic leadership and continued enthusiasm for the global crypto landscape as he transformed Luno into a digital asset powerhouse,” Barry Silbert, Founder of DCG. and CEO, said in a statement Wednesday.
Swanepoel’s decision to step down as CEO ends a string of bad news surrounding Luno. The London-based firm, which has offices in Africa, Southeast Asia and Europe, laid off 35% of its workforce in January, citing market turmoil. The company also lost its co-founder and chief technology officer, Timothy Stranex, in December.
Despite the pain the industry has endured, digital currencies have shown signs of recovery this year. Bitcoin is up 70% since the start of the year and is currently trading above $28,000 for the first time in nine months. Ether, the second largest token, has risen 50% so far this year and is now worth $1,800 apiece.
SEE: Bitcoin to $10,000 – or $250,000? Investors are sharply divided in 2023
