BlocksInform
Digital currency group (dcg) affiliate genesis finally filed for chapter 11 bankruptcy in the South District of New York (sdny) court late Thursday evening.
The platform was engaged in a series of confidential talks with several groups of creditors during weeks in the midst of a liquidity crisis.
- According to the latest report, Genesis Global Holdco and two of its lending business subsidiaries – Genesis Global Capital and Genesis Asia Pacific – have filed voluntary petitions under the bankruptcy code for SDNY.
- The official press release stated,
“Genesis’s other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.”
- Genesis Global Capital, which happens to be Gemini's recently retired Earn program partner, has over 100,000 creditors with liabilities and assets of approximately $1 billion and $10 billion.
- The estimated assets and liabilities of the two lending subsidiaries are in the $100 million to $500 million range.
- The deposit does not include other original subsidiaries engaged in derivatives, cash trading and custodial activities.
- In addition, genesis global trading was missing in filing for bankruptcy and pursuing the trading functions of customers.
- The tribunal's paper revealed that Genesis Global Capital plans to use the remaining money to compensate unsecured creditors through the restructuring process.
- Its press release stated that Genesis has more than $150 million in cash on hand, which is expected to provide “ample liquidity” necessary to continue its ongoing business operations as well as to facilitate the restructuring process.
- The development comes just a day after fresh bankruptcy concerns surfaced amid attempts for funding.
- Genesis reduced its staff by 30 per cent earlier this year after suffering two significant financial setbacks, first of all the implosion of crypto hedge fund Three Arrows Capital (3AC) and the collapse of crypto swap FTX.
