Genesis files for bankruptcy

The cryptocurrency lending company filed for bankruptcy protection, belonging to the Southern District of New York, United States

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.

K.Tovar

Source: Diariobitcoin

(Reference image source: Radio Capital)

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