Cryptocurrency lender Genesis files for bankruptcy
Cryptocurrency lender Genesis filed for bankruptcy late Thursday night in Manhattan Federal Court in the United States of America.
Genesis is part of the Digital Currency Group, a conglomerate of more than 200 crypto-focused companies owned by billionaire Barry Silbert.
Genesis' insolvency is believed to be linked to the bankruptcy of FTX which went bankrupt last November following allegations of fraud.
The crypto lender listed more than 100,000 creditors in a "mega" bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion , according to bankruptcy documents.
In a statement, according to US media giant, CNBC, the company noted that the companies were only involved in Genesis' crypto lending business. The company's derivatives and spot trading activities will continue unimpeded, as will Genesis Global Trading.
Genesis Acting CEO Derar Islim said in the statement, "We look forward to advancing our dialogue with DCG and our creditors' advisors as we seek to implement a pathway to maximize value and provide the best opportunity for our business to emerge well positioned for the future.”
The filing comes just days after the Securities and Exchange Commission filed a complaint against Genesis for unregistered offering and selling of securities.
Cryptocurrency lender Genesis filed for bankruptcy late Thursday night in Manhattan Federal Court in the United States of America.
Genesis is part of the Digital Currency Group, a conglomerate of more than 200 crypto-focused companies owned by billionaire Barry Silbert.
Genesis' insolvency is believed to be linked to the bankruptcy of FTX which went bankrupt last November following allegations of fraud.
The crypto lender listed more than 100,000 creditors in a "mega" bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion , according to bankruptcy documents.
In a statement, according to US media giant, CNBC, the company noted that the companies were only involved in Genesis' crypto lending business. The company's derivatives and spot trading activities will continue unimpeded, as will Genesis Global Trading.
Genesis Acting CEO Derar Islim said in the statement, "We look forward to advancing our dialogue with DCG and our creditors' advisors as we seek to implement a pathway to maximize value and provide the best opportunity for our business to emerge well positioned for the future.”
The filing comes just days after the Securities and Exchange Commission filed a complaint against Genesis for unregistered offering and selling of securities.
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