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Seeking Alpha 2023-01-18 20:02:34

Genesis Global likely to file for bankruptcy this week - report

Cash-strapped cryptocurrency lender Genesis Global Capital is working on filing for bankruptcy potentially this week, Bloomberg reported citing people with knowledge of the matter. The lending arm of Digital Currency Group is said to be in confidential talks with creditors as the business faces a liquidity crunch. While many proposals have been put forward, creditors, Genesis and Digital Currency Group have yet to reach a deal, the people quoted in the report said. Genesis has been scrambling to raise cash given its exposure to failed crypto exchange FTX ( FTT-USD ). Genesis reportedly owes its creditors over $3B. The broker was forced to suspend customer withdrawals and new loan originations in November after the FTX collapse. Genesis and Digital Currency Group did not immediately respond to requests for comment. Digital Currency Group halted its quarterly dividends to conserve cash, Bloomberg reported earlier in the day. Last week, the U.S. SEC charged Genesis and crypto exchange Gemini Trust with selling unregistered securities to retail investors .

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