Cryptocurrency lender Genesis recently filed for Chapter 11 bankruptcy protection in the Southern District of New York, United States.

This is not a surprise, the company had previously stated that it was considering filing for bankruptcy if it was unable to raise capital and deal with its current liquidity problems.

Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC have filed a trio of voluntary petitions with the bankruptcy court, according to the statement. Genesis’ other subsidiaries involved in custody, spot trading and derivatives businesses, as well as Genesis Global Trading, were not included in the presentation.

The Genesis Global Capital firm has estimated liabilities between 1,000 and 10,000 billion dollars in assets of the same range, as for the other two, it is estimated between 100 and 500 million dollars.

The bankruptcy filing comes after the company was hit by the two biggest industry crashes in 2022. Genesis Global Capital suspended withdrawals in November, shortly after FTX’s bankruptcy. The move hurt many clients, including those of Gemini Earn, the yield product of the Winklevoss brothers’ Gemini exchange.

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Source: Diariobitcoin

(Reference image source: Radio Capital)

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Cryptocurrency trading and lending platform Voyager Digital voluntarily filed for Chapter 11 protection of the United States Bankruptcy Law in order to undertake the restructuring of the company and maximize value for all stakeholders.

The firm filed the voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Southern District of New York and intends to seek recognition of the case in the Ontario Superior Court of Justice, pursuant to the Companies Creditors Agreements Law.

In the documentation presented, Voyager Digital claims to have about 1,300 million dollars in crypto assets on the platform, plus 350 million dollars in cash in the Metropolitan Commercial Bank customer account, while accumulating claims for non-payment of more than 650 million dollars against the Three Arrows background.

This cryptocurrency-focused investment hedge fund failed to meet margin calls by several of its lenders in mid-June. Three Arrows had invested in the Terra and Luna cryptos, which went completely bankrupt and triggered a crisis of the cryptocurrency sector.

Last week Voyager suspended withdrawals as well as deposits and all transactions on its platform due to current market conditions.

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Source: Bolsamania

La entrada Voyager Digital enters into Bankruptcy Law apareció primero en Bitfinance.