Chapter 11 Bankruptcy Decided Upon By Crypto Lending Unit Of Genesis
Genesis Global Holdco LLC has reportedly filed for Chapter 11 bankruptcy protection. This is also the parent company of notable crypto lender Genesis Global Capital. Additionally, the company recently announced that it would be laying off 30% of its workforce, reducing it to 145 employees.
Genesis Global Holdco LLC, Genesis Asia Pacific Pte. Ltd, and Genesis Global Capital LLC filed three voluntary petitions with the bankruptcy court. All three are owned by Digital Currency Group. As of this moment, Genesis has requested that the cases be handled jointly to simplify the entire process.
Genesis Global Capital was estimated to have over 100,000 creditors and between $1 billion and $10 billion in assets and liabilities in its filing. It is also anticipated that sufficient funds would be left over after the restructuring process to pay unsecured creditors, a group which may very well be wiped out in bankruptcy cases should the situation prove to be catastrophic.
In the past, Genesis Global Capital had no choice but to suspend customer withdrawals shortly after FTX filed for bankruptcy last November, adversely affecting customers of a yield product that was offered by the Gemini crypto exchange.
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