Genesis Global Holding Corporation has formally declared bankruptcy pursuant to Chapter 11. The digital currency group's trading and lending affiliate presented deposits late Thursday night at the South District Bankruptcy Court in New York, bringing to 10 the number of crypto companies that have gone out of business.
The company first released plans to declare insolvency after news of the collapse of ftx hit the general public at the end of last year. It was hit hard with $175 million.
The combined losses of investments in ftx and capital that has now disappeared by three arrows, which fell last year, reached $1.3 billion, forcing the trading office to retreat. In the weeks leading up to the advertisement, Barry Silbert's scholarship had tried to stay afloat by reducing his staff by 30 per cent, even because of the pressure exerted by the United States in terms of security and trade (sec) and by its industrial partner, gemini.
Genesis and Gemini accused of creating and exchanging unlicensed crypto assets. The partnership program designed to reward depositors with a 7.4% interest has gone wrong as Genesis fought to account for more than $900 million in assets from Gemini's deposited clients.
Genesis will have to settle more than 9 billion dollars of debt, one third of which will be paid to the 50 largest creditors.
Another One Bites The Dust
Genesis is the latest in a growing list of crypto companies going bankrupt. Traveling, celsius, terraform, blockfi, babel finance, ftx, zipmex, and hodlnaut have all thrown in the towel during the past year in what many have described as the coldest crypto winter ever. The ripple effect of these dying societies is not yet fully determined, as many other crypto societies are suspected of being affected by the contagion, as is the genesis.
However, crypto communities remain optimistic that other DCG affiliates may survive. Founded in 2015, Genesis is the oldest of the seven main subdivisions of DCG, coindesk, grayscale, foundry, luno, headquarters and commercial block.
Immediate bankruptcy.
In a written declaration after submission, The interim CEO of Genesis, Islim Derar, noted that the company's objective is to pass the chapter 11 process as speedy and effective as possible while achieving the best results and coming out in good shape for the future.
Over the years, the delay in settling bankruptcy proceedings in the cryptocurrency and traditional finance industry has grown steadily, leaving creditors confused and uncertain. The founders stranded from the late three capital arrows recently sought to solve this problem by creating a crypto exchange based on the claim, gtx, for the victims of bankruptcy. However, there is still a great deal of skepticism in light of their history of failure.