Cryptocurrency lending firm Genesis Global Capital, a subsidiary of crypto conglomerate Digital Currency Group, is reportedly preparing to file for bankruptcy as early as this week.
According to a Jan. 18 Bloomberg report, Genesis previously said it was considering a bankruptcy filing if it were unable to raise cash amid a liquidity crunch — a situation similar to that preceding crypto exchange FTX’s Chapter 11 filing in November. Citing people with knowledge of the situation, Bloomberg reported Genesis could file for bankruptcy as soon as this week.
The report followed the United States Securities and Exchange Commission announcing on Jan. 12 that it had charged Genesis and crypto exchange Gemini with offering unregistered securities through Gemini’s “Earn” program. The firm also reported it had roughly $175 million worth of funds on FTX prior to the exchange’s bankruptcy in November.
This story is developing and will be updated.
Author: Turner Wright