Genesis could be filing for bankruptcy as soon as this week

Last Updated on 38 mins by John Piper

According to reports, Genesis Global Capital, a cryptocurrency lending company, will file for bankruptcy within the next few days.

This is yet another cryptocurrency company that has had difficulty with liquidity, and it comes only months after the collapsed controversial crypto exchange FTX.

Sources familiar with the matter say that the firm was facing a liquidity crisis similar to that which led to the November bankruptcy filing of FTX. This news comes just days after Gemini and Genesis were charged by the United States Securities and Exchange Commission with offering unregistered securities via Gemini’s “Earn” program. This case remains pending.

Cameron Winklevoss (Gemini co-founder) claims that Genesis owes $900 million to the company for funds it borrowed as part of the same program. Digital Currency Group denies the claims.

Industry experts believe the liquidity problems could be caused by the collapse of Three Arrows Capital, a crypto venture capital firm. In January, Genesis CEO Barry Silbert told shareholders that Three Arrows owed Genesis $447.5million and 4,550 Bitcoin. This was approximately $78 million at the time. Genesis had $175 million in FTX funds before its November bankruptcy, which may have contributed to the firm’s liquidity crisis and possible insolvency.

Recent collapses of other cryptocurrency exchanges have occurred. These include:

  • FTX (File to Chapter 11 bankruptcy in November).
  • Terraform Labs
  • Voyager Digital
  • Celsius Network
  • Three Arrows Capital
  • BlockFi

This is not a complete list, and the crypto market is dynamic. However, there are always changes and developments.

Coin Insider’s first article, Genesis may file for bankruptcy this week appeared originally on Coin Insider.

Be the first to comment

Leave a Reply

%d bloggers like this: