Cryptocurrency lender Genesis files for bankruptcy

dafd future of cryptocurrency
dafd future of cryptocurrency

Cryptocurrency lender Genesis has 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 businesses, owned by billionaire, Barry Silbert.

Genesis’ insolvency is reportedly linked to the bankruptcy of FTX which went under last November amid allegations of fraud.

The crypto lender listed over 100,000 creditors in a “mega” bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars, 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 business will continue unhindered, as will Genesis Global Trading.

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Genesis interim CEO, Derar Islim, in the statement said, “We look forward to advancing our dialogue with DCG and our creditors’ advisors as we seek to implement a path 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 suit against Genesis over unregistered offering and sale of securities.

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