Cryptocurrency lender Genesis preparing for bankruptcy: Report

Cryptocurrency lender Genesis preparing for bankruptcy: Report

Cryptocurrency lender Genesis is reportedly preparing to declare bankruptcy as a number of companies deal with the fallout from flagging cryptocurrency prices and FTX’s collapse.

Genesis, the lending unit of Digital Currency Group, is facing a liquidity crunch and has been laying the groundwork for a bankruptcy filing this week, the Wall Street Journal reported. A Chapter 11 filing had been anticipated for months as the company faced serious headwinds.

FTX HAS RECOVERED MORE THAN $5 BILLION IN ASSETS, BANKRUPTCY ATTORNEY SAYS

FTX's Crypto Contagion Infects Firms From BlockFi To Voyager
The Genesis website on a smartphone arranged in the Brooklyn borough of New York, US, on Thursday, Nov. 17, 2022. Reverberations from the collapse of Sam Bankman-Fried’s empire continue to spread through financial markets, threatening the future of crypto lenders like BlockFi Inc. and Voyager Digital Ltd.

(Gabby Jones/Bloomberg via Getty Images)

Genesis laid off 30% of its employees earlier in January, with the cuts coming across the board and not just in one department. The company was left with a staff of 145 after the job cuts. Genesis has been in talks with investment bank Moelis & Company to mull its options, including bankruptcy.

At the time of the layoffs, a Genesis spokeswoman said the cryptocurrency lender is consulting with advisers “to preserve client assets and move the business forward.”

Several other cryptocurrency firms have suffered over the past few months. FTX dramatically imploded in November and dragged several companies down with it. The price of bitcoin also plunged following the crypto giant’s collapse.

Bitcoin fell from above $21,000 and was treading water at below $17,000 for several weeks following FTX’s downfall.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Genesis faced big losses from the loans it supplied to Alameda Research, a hedge fund associated with FTX that is at the center of the controversy surrounding the company and FTX’s disgraced founder, Sam Bankman-Fried.

Crypto lender BlockFi announced late last month that it had filed for bankruptcy. BlockFi’s struggles were intertwined with those of FTX, as the company provided BlockFi with a $400 million credit line and the option to buy the company.

Source link

Related post

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

Bitcoin pro traders warm up the $24K level, suggesting…

On Feb. 1 and Feb 2. Bitcoin’s (BTC) price surpassed even the most bullish price projections after the U.S. Federal Reserve…
Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

(Bloomberg) — Rising Bitcoin prices are buying some time for distressed crypto miners as they renegotiate debt with lenders to stay…
Financial Accounting Standards Board votes to release draft cryptocurrency in March

Financial Accounting Standards Board votes to release draft cryptocurrency…

The Financial Accounting Standards Board, in its Feb. 1 meeting, voted to advance its first standard on cryptocurrencies and digital assets.…

Leave a Reply

Your email address will not be published.