- Genesis Trading has declared bankruptcy after suffering huge losses due to the collapse of the broader crypto market.
- The bankruptcy filing identified between $1.2 billion and $11 billion in total liabilities and 100,000 creditors.
- Cameron Winklevoss threatened to sue Barry Silbert.
Late Thursday night, cryptocurrency lending company Genesis filed for Chapter 11 bankruptcy in Manhattan federal court, becoming the latest victim of an industry contagion stemming from the collapse of FTX. According to bankruptcy filings, the company has between $1.2 billion and $11 billion in total liabilities and has identified more than 100,000 creditors in a “massive” bankruptcy case.
Genesis Asia Pacific and Genesis Global Holdco, the parent company of Genesis Global Capital, also filed for bankruptcy. Genesis Global Holdco said in a statement that it has $150 million in cash to support the restructuring and will consider a sale or settlement to pay creditors.
The statement indicated that other Genesis companies, including its derivatives, spot trading activities, broker and dealer activities, and custody activities, will not be affected by the bankruptcy and will continue to serve its customer base as usual.
“We look forward to moving forward in our dialogue with DCG and our creditor advisors as we seek to implement a path of maximizing value and providing the best opportunities…
Bankruptcy emerges after Genesis Files Chapter 11 as Winklevoss threatens legal action for the first time in issuing Coin.