- Genesis Global Capital, a crypto lending platform owned by Digital Currency Group (DCG), is said to be considering filing for bankruptcy.
- Bloomberg reports that Genesis is likely to file for bankruptcy this week.
- Genesis suspended customer withdrawals in November, owing more than $900 million to Gemini Earn customers alone.
Troubled crypto lender Genesis Global Capital is reportedly about to file for bankruptcy, according to the latest crypto news on the platform.
Genesis, a subsidiary of Digital Currency Group, DCG, has been one of the main topics across Crypto Twitter over the past few weeks regarding its role in the troubles plaguing crypto lending units. DCG also owns Grayscale and crypto publication CoinDesk.
Genesis could file for bankruptcy as early as this week
In fact, as we recently reported, cryptocurrency exchange Gemini has blamed DCG for the difficulties DCG has faced since Genesis suspended redemption and lending launches last November. , the U.S. Securities and Exchange Commission (SEC) has indicted both Gemini and Genesis for violating securities laws through offerings linked to Gemini Earn products.
Genesis may file for bankruptcy protection in the next few days, according to reports, amid the liquidity crisis currently plaguing the company.Sources cited by Bloomberg report On Wednesday, it said the bankruptcy filing could be done by the end of the week.
Businesses are using Chapter 11 bankruptcy proceedings as a platform to enable hard business hours where they can work towards rescuing assets and recovering creditor value.