Crypto lender Genesis filed for bankruptcy. According to various estimates, the company’s liabilities are up to $10 billion.
Genesis Global Capital filed for Chapter 11 bankruptcy in the Southern District of New York. It was reported in a press release. Genesis is now involved in discussions with its advisors to its creditors and parent company Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward.”
Under Chapter 11, the company will begin a voluntary restructuring process of its lending business to best meet its obligations to its own customers and users of Gemini Earn. The restructuring process will be led by an independent special committee of the board of directors. Specifically, the restructuring includes Genesis Global Holdco, LLC (GGH) and its two lending subsidiaries, Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific Pte. Ltd. (GAP), which provide lending services.
It’s noted that Genesis’ spot trading, broker-dealer, and custody businesses aren’t subject to the bankruptcy filing, so related activities will continue. The company raised more than $150 million in cash, which “will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process.”
Recall that reports about Genesis Global Capital planning to file for bankruptcy appeared the day before.
