Just In: Genesis Global Trading Files for Bankruptcy

• After being under heavy pressure for several weeks, Genesis Global Trading finally files for chapter 11 bankruptcy.
• As reported by CNM, both Gemini and Genesis are presently being charged by SEC for offering unregistered securities.

Genesis Global Trading, a cryptocurrency lender, filed for Chapter 11 bankruptcy protection on Thursday. The company had liabilities of $1 billion to $10 billion and assets in the same range, according to the Jan. 19 filing with over 100,000 creditors.

Genesis’ bankruptcy filing is the latest sign of the turmoil in the cryptocurrency market. The company was heavily exposed to Three Arrows Capital (3AC), a crypto hedge fund that recently filed for bankruptcy itself. Genesis was reportedly owed over $3 billion by 3AC, and its bankruptcy filing is likely to further damage the reputation of the cryptocurrency industry.

In addition to its exposure to 3AC, Genesis was also struggling with liquidity problems of its own. The company had been forced to suspend redemptions and loan originations in recent weeks, and it was reportedly seeking emergency funding from its parent company, Digital Currency Group (DCG).

DCG has provided Genesis with $150 million in cash to fund its bankruptcy, and the company plans to continue operating as it tries to pay back creditors. However, it is unclear how much of its debt Genesis will be able to repay.

The bankruptcy filing of Genesis is a significant development for the cryptocurrency industry. It is the first major crypto lender to file for bankruptcy, and it is a sign of the growing risks in the industry. It is also likely to have a chilling effect on the lending market, as lenders will be more reluctant to lend money to crypto companies.

The bankruptcy filing of Genesis is also a blow to DCG. The company has been a major player in the cryptocurrency industry, and it has invested in a number of high-profile crypto companies. However, the bankruptcy of Genesis is a reminder that even the most well-funded crypto companies are not immune to risk.

It remains to be seen what the long-term implications of the bankruptcy filing of Genesis will be. However, it is clear that the cryptocurrency industry is still in its early stages, and it is still subject to significant risks.