BlocksInform
Cryptocurrency lender genesis filed for chapter 11 bankruptcy in New York's South District.
The society has estimated the liabilities from 1 to 10 billion dollars and the assets in the same range, according to January. 19 filing.
Earlier reports claimed the company would file for bankruptcy protection if it was unable to raise capital due to a liquidity crisis.
In a Jan. 19 press release, Genesis said it has been engaged in discussions with “advisors to its creditors and corporate parent Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward.”
“Genesis has now commenced a court-supervised restructuring process to further advance these discussions.”
The plan of chapter 11 of the enterprise provides for a "two-way process" aimed at a "sale, capital raise, and/or a riding operation" which would seemingly allow the company to "emerge under new owners."
The company suspended its platform withdrawals in November in the midst of market turbulence caused by FTX's collapse. Earlier in January the company laid off a further 30% of its workforce, the second round of job cuts in six months.
This is an evolving story, and more details will be added as they become available.
