Genesis, A Cryptocurrency Lender, Is Preparing To File For Bankruptcy, According To Bloomberg News

Genesis Global Capital, a cryptocurrency lender, is expected to file for bankruptcy as soon as this week, according to Bloomberg News, citing individuals familiar with the issue.

For weeks, a bankruptcy filing was anticipated after the business suspended client redemptions on Nov. 16 after the collapse of major cryptocurrency exchange FTX.

Following FTX's demise in November, numerous victims emerged, including crypto lender BlockFi and Core Scientific Inc, one of the largest publicly listed crypto mining businesses in the United States, both of which filed for bankruptcy protection in the months that followed.

According to the Bloomberg story, Genesis, its parent company Digital Currency Group, and creditors have exchanged various offers but have yet to reach a deal. Kirkland & Ellis and Proskauer Rose have been counseling groups of creditors.

Genesis did not immediately reply to a request for comment from Reuters.

Genesis is also at odds with Gemini, which was created by identical twin crypto pioneers Cameron and Tyler Winklevoss.

Gemini, in collaboration with Genesis, created a crypto loan product called Earn and now claims Genesis owes it $900 million in connection with that product.

The Assets and Exchange Commission accused Genesis and Gemini last week of unlawfully marketing securities to hundreds of thousands of investors through their crypto lending scheme.

Keep an eye out for more cryptocurrency news.

You may download the WikiFX App for your mobile device from the download link below, as well as the App Store or Google Play Store.

Link to download: https://www.wikifx.com/en/download.html