New York
Genesis exodus: Cryptocurrency lender Genesis Global Capital has filed for Chapter 11 bankruptcy protection in the US, owing its top 50 creditors $3.4bn, says Bloomberg. The number of listed creditors, however, is well over 100,000. Genesis Global Trading and other units involved in derivatives and spot trading are not part of the filing. Genesis has $150m to fund itself and it will now try to sell assets or raise money, with creditors owning the reorganised business should those efforts fail. Previous efforts to raise cash had gone nowhere, leading to the liquidity crunch.
Parent company Digital Currency Group, owned by crypto baron Barry Silbert (pictured), had come under pressure ever since crypto-focused hedge fund Three Arrows Capital collapsed last year. Genesis’s lending division had also been a major lender to crypto exchange FTX, which failed in November, prompting Genesis to suspend withdrawals. Cameron Winklevoss, co-founder of the Gemini crypto exchange, has threatened legal action to return the $900m in