Breaking: Crypto Giant Genesis To File For Bankruptcy As Early As This Week

In light of the current shortage of liquid assets–Genesis Global–the crypto lending division of Digital Currency Group (DCG) has been engaged in private discussions with a variety of creditor parties. A recent report warned that the company may have to declare bankruptcy if it is unable to raise additional funds.

Genesis Prepares For Bankruptcy

Reports suggest that creditors like the Winklevoss twins would be willing to agree to a remission period between one and two years under the prepackaged bankruptcy plan. This forbearance period would be applicable to most payments. According to the information obtained, creditors would receive cash payments in addition to the shares in Genesis' parent company, the dcg which is run by barry silbert.

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Cameron Winklevoss, the co-founder of Gemini, and Barry Silbert have been engaged in a Twitter fight where the former has accused Silbert of intermixing finances at the crypto conglomerate and of negotiating in bad faith. In his most recent open letter, he demanded the DCG chief stand down from his position as he failed to keep his end of the promise of returning customer funds worth $900 million.

Genesis is dealing with increasing stress.

Further proving Genesis’ weak financials, DCG sent a letter to the shareholders on January 17,  where the company informed that it will stop paying quarterly dividends in an attempt to preserve capital. Creditors, genesis, and dcg compared many different approaches but still could not agree. Both kirkland & ellis and proskauer rose have been serving as representatives of various groups of creditors.

After the failure of the hedge fund Three Arrows Capital, financial pressure started to build up at Barry Silbert’s DCG. In November, shortly after the cryptocurrency exchange–where Genesis had some of its cash stored–filed for bankruptcy, Genesis ceased processing withdrawals. Crypto swap gemini confidence, Cameron and Tyler Winklevoss are in charge, was affected by such developments as winning out, a program that enables platform users to earn interest on their coins by lending them via Genesis, had to stop processing buyback requests as well.

Worldwide genesis which prepares the ground for the petition of bankruptcy could take place this week.

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