- Genesis Global Capital, a crypto lending platform owned by Digital Currency Group (DCG), is considering filing for bankruptcy.
- Genesis is likely to file for bankruptcy this week, according to a Bloomberg report.
- Genesis stopped taking clients in November, with over $900 million in Gemini Earn clients alone.
Troubled cryptocurrency lender Genesis Global Capital is reportedly seeking bankruptcy, according to the latest cryptocurrency news surrounding the platform.
Genesis is a subsidiary of Digital Currency Group, DCG, a crypto company that has been one of the main topics on Crypto Twitter in recent weeks for its role in the troubles now cheating its crypto lending unit. DCG also owns Grayscale and crypto publication CoinDesk.
Genesis could file for bankruptcy as early as this week
Indeed, as we recently reported, crypto exchange Gemini has been blaming DCG for the difficulty it has faced since Genesis paused redemptions and lending in November last year. And the US Securities and Exchange Commission (SEC) has charged both Gemini and Genesis with violating securities laws through offerings tied to the Gemini Earn product.
Now, amid the liquidity crisis that has plagued the company, word is out that Genesis could file for bankruptcy protection in the coming days. Sources cited in a Bloomberg report Wednesday say the bankruptcy filing could take place before the end of the week.
Companies use Chapter 11 bankruptcy proceedings as a platform that gives the beleaguered company time to work on rescuing assets and recovering value for creditors.