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Stephen Alpher
Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds btc and eth above the coindesk's $1,000 reporting threshold.
Danny is the CoinDesk Special Projects Editor-in-Chief. He is the owner of BTC, ETH and SOL.
Genesis Global Holdco LLC, the parent company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection after being pummeled by two of 2022's biggest industry collapses.
Genesis global holdco, llc and its predecessor subsidiaries genesis asia pacific pte. Ltd and Genesis Global Capital, LLC has filed three voluntary bankruptcies. All three are part of the Digital Money Group, which also owns coindesk. Genesis proposed co-management of business.
In his storehouse, genesis capital in the world, the business partner of the defunct Gemini earnings scheme, estimated over 100,000 creditors and between 1 and 10 billion dollars in liabilities, together with assets. The other two entities estimated their assets and liabilities at $100M and $500M respectively.
These enterprises include crypto loan genesis which was shaken last year by the implosions of hedge fund three capital arrows and crypto exchange ftx. Other genesis subsidiaries involved in Derivatives and Spot Trading, Custody and Genesis Global Trading activities have not been included in the deposit and continuation of customer trading transactions, news release said.
In his storehouse, World Capital Genesis said it expects through the process of restructuring, money will remain to pay unsecured creditors, a group that can be eliminated in the event of bankruptcy if the situation is extremely serious.
Shortly after FTX collapsed into its own bankruptcy case in November, Genesis Global Capital was forced to suspend customer withdrawals, which hurt customers of a yield product offered by the Winklevoss twins' crypto exchange, Gemini.
Genesis had gone out of its way to find new capital or to enter into an agreement with its creditors. It – along with parent company Digital Currency Group (DCG), which also owns CoinDesk – was under increasing pressure to make good on $900 million of locked deposits.
The bankruptcy "is a crucial step towards us being able to recover your assets," Gemini's Cameron Winklevoss tweeted shortly after the filing was announced.
Genesis late last year retained investment bank Moelis & Co. Help explore options.
Before FTX dealt a blow to Genesis, the failure of crypto hedge fund Three Arrows Capital had caused hundreds of millions of dollars in losses for the firm, CoinDesk CoinDesk reported first last year.
Earlier this month, Genesis announced it was laying off 30% of its staff, taking it down to 145 employees.
The bankruptcy filing on Thursday could have wider implications for Bitcoin as genesis and manager of grayscale digital assets share the same parent company in dcg. Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has $10 billion-plus in assets under management and was late last year trading at a record discount to net asset value, although that discount has narrowed recently. There are market fears that the fallout from Genesis bankruptcy might somehow lead to the liquidation of GBTC's holdings of 600,000 Bitcoin.
