Genesis Considers Bankruptcy Filing: Report
LONDON, UK – Genesis could file for Chapter 11 bankruptcy as early as this week, according to an exclusive report from Bloomberg. Days after FTX filed for bankruptcy, Genesis halted all payouts and loans due to its great liquidity exposure to FTX.
While much of Genesis’s liquidity was jeopardized in the aftermath of FTX’s collapse, the firm’s funds were in peril following the Three Arrow Capital (3AC) crash last summer. Genesis had almost $78 million of bitcoin exposed to 3AC in June 2022 when that exchange collapsed.
Genesis also had $175 million held on the FTX exchange when it collapsed in November 2022. Further plaguing Genesis’s situation is the ongoing feud it has with Gemini over paying back $900 million it borrowed Gemini’s Earn platform.
Genesis’ parent company, DCG, is also facing an ongoing federal investigation over suspicious internal transfers. Crypto influencers such as the Blonde Broker have expressed concern over Genesis’ ability to successfully recover from the many crises it is currently facing.
