Cryptocurrency exchanges The fall of FTX, was without a doubt the loudest event of 2022 in the cryptocurrency industry. As a result, not only ordinary investors suffered big losses, but also FTX partners who kept part of their funds there. Soon after FTX filed for bankruptcy, crypto lender “BlockFi“. It looks like another major player in the crypto industry won’t survive this year. Cryptocurrency lending and trading conglomerate Genesis, which includes more than 200 companies, has just filed for bankruptcy.
Genesis was one of the largest lenders to FTX and decided to stop withdrawing assets from the platform in November after the cryptocurrency exchange crashed. On the other hand, at the beginning of this month, Genesis reduced its workforce by 30%. The Financial Times reported in January that Genesis owed creditors more than $3 billion. Of this, the company owes nearly one billion dollars to customers of its managed cryptocurrency exchange Gemini.
Last November, Genesis tried to raise more than one billion dollars from various investors, including Binance. But apparently, it has not been very successful. At the same time, Genesis has disclosed that it has more than $150 million in assets to finance its operations as well as restructuring of the company.
Genesis filed for bankruptcy on January 19. The company’s interim executive director has informed that the company is currently negotiating with its parent company “Digital Currency Group” and creditors in order to save something. Restructuring Genesis now appears to be the most effective way to do the least damage to all parties involved.
