Affected by FTX, Genesis Global Capital Also Filed for Bankruptcy Protection

Genesis Global Capital, plans to file for bankruptcy as soon as this week. (photo: Twitter @Gen_capital)

JAKARTA – Crypto-currency lending platform Genesis Global Capital plans to file for bankruptcy as soon as this week. This story first appeared in Bloomberg News on Wednesday, January 18, citing people familiar with the situation.

This bankruptcy filing has actually been in the pipeline for weeks, after the company froze customer redemption on November 16 following the crash of major cryptocurrency exchange, FTX.

The collapse of FTX last November has claimed several victims including crypto lender BlockFi and Core Scientific Inc, one of the largest publicly traded crypto mining companies in the United States. The two filed for bankruptcy protection in the following months.

According to a Bloomberg Genesis report, a subsidiary of Digital Currency Group and creditors have exchanged several proposals, but have so far failed to reach an agreement. Reuters added that Kirkland & Ellis and Proskauer Rose had also advised the creditor group.

Genesis did not immediately respond to a request for comment from Reuters on the bankruptcy report.

Genesis is also locked in a dispute with Gemini, which was founded by crypto pioneers identical twins Cameron and Tyler Winklevoss.

Gemini offers a crypto lending product called Earn in partnership with Genesis, and now says Genesis owes it $900 million in connection with that product.

The US Securities and Exchange Commission last week said it had accused Genesis and Gemini of illegally selling securities to hundreds of thousands of investors through their crypto lending programs.