Crypto C-suite heads are rolling amid hibernation

The crypto C-suite and senior management have seen a rash of departures recently, some leaving due to scandal and others simply moving on.

The big picture: US CEO turnover jumped 8% in August from the previous month, led by departures in the technology and fintech sectors, according to recent research from Challenger Gray & Christmas. Peak sales tend to hit during economic highs and lows, senior vice president Andrew Challenger told Axios.

Driving the news: Executives at Celsius Network, FTX.US, Genesis Global Trading, Kraken and MicroStrategy – some of which are considered crypto industry OGs – announced their resignations in recent weeks.

Flashback: “If you’re unhappy and you know it, quit,” was the message from big bosses to disgruntled employees during layoffs in the second quarter.

• A few of these bosses seem to be taking that message to heart.

The intrigue: As the crypto industry grapples with what appears to be an increasing pace of exits at the top tier of companies, turnover for CEOs in the US is roughly flat compared to last year.

• About 895 bosses are leaving their positions at the helm, compared with the 888 who had resigned at this time last year, according to Challenger’s data.

Between the lines: In addition to the overall economic catalyst, other factors for the executive shuffle in crypto may be at play.

• Startup founders tend to be pushed out in favor of seasoned executives as industry competition forces swathes of firms to seek out specific talent—such as e-commerce experience for retail.
• Or when people just mess up.

What they say: “Whether mistakes were made or not,” Challenger says, “crypto firms make changes at the very top.”

Details: Here is a list of managerial departures announced since August:

Alex Mashinsky, Celsius network (2017–September 27, 2022)

• Mashinsky resigned earlier this week amid Celsius Network’s bankruptcy proceedings. His exit followed a series of leaked town hall meetings, where the Celsius boss discussed new business plans.

Brett HarrisonFTX.US (May 2021 – September 27, 2022)

• Harrison said he is taking an advisory role at the firm; Zach Dexter, former head of US-regulated crypto derivatives platform LedgerX, is expected to succeed him. Recall FTX bought LedgerX last year.

Jesse PowellKraken (2011–September 21, 2022)

• Powell will continue as chairman and will be succeeded by COO David Ripley. The OG crypto boss stepped down as boss after the crypto exchange grabbed headlines for its workplace culture.
• What they’re saying: Powell said he didn’t like the concert.

Sam TrabuccoAlameda Research (2021–24 August 2022)

• Trabucco was named co-CEO last year after spending two years as a trader at the firm. He tweeted about his departure in a thread called “On happiness.”

Michael Moro, Genesis Global (2016–17 August 2022)

• Moro stepped down as head of Digital Currency Group’s trading arm as the firm cut 20% of its workforce. The shake-up came after it was revealed that the entity had lent $2.4 billion to Three Arrows Capital.
• Note: Four senior executives also announced their respective departures.

Michael SaylorMicroStrategy (1989–August 8, 2022)

• Saylor remains chairman but stepped down as CEO after leading the software company he founded to invest more than $4 billion in bitcoin.
• Note: Shortly thereafter, the DC attorney general sued Saylor for tax evasion, which the CEO denied in an email to Axios.