Struggled Crypto lender Genesis Global Trading filed for bankruptcy under the chapter 11 code in a New York bankruptcy court.
Genesis Global Trading was a popular crypto lender platform. This platform had significant exposure to the FTX exchange, so bankruptcy of the FTX exchange resulted in a very big financial loss for this crypto lender. On 11 Nov 2022, FTX filed for bankruptcy, and just before FTX bankruptcy, Genesis suspended funds withdrawal for the customers.
On 19 Jan 2023, Genesis firm announced via a press release that the company filed for bankruptcy in a Southern District of New York bankruptcy court under the chapter 11 code. The filing claimed that the firm has estimated liabilities of $1 billion to $10 billion and assets in the same range.
Through the press release, Genesis noted that its team is in discussion with its parent company Digital Currency Group (DCG), and other advisors to figure out a perfect path for the future of Genesis, in favour of investors & creditors.
“Genesis has now commenced a court-supervised restructuring process to further advance these discussions.”
This situation is showing that Genesis is still under a plan to raise funds & revive its services again. But few reports claimed that almost all the failed Crypto companies filed for bankruptcy under the chapter 11 code but no one decided to start the business again, instead selling the assets in favour of creditors.
Genesis vs Gemini
Gemini Crypto exchange Co-founder Cameron Winklevoss took to Twitter to inform the Crypto community that he will take legal action against Genesis, DCG & Genesis CEO Barry Silbert over the fraud that they did with 340k+ Gemini customers.
Indeed, Gemini & Genesis were under a partnership to provide a Crypto yield program for Gemini customers. Reportedly, Genesis owes $900 million worth of crypto assets from Gemini customers.
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