Crypto lending firm Genesis Global Capital, a subsidiary of crypto conglomerate Digital Currency Group, is reportedly preparing to file for bankruptcy as early as this week.
Bloomberg reported on Jan. 18 that Genesis had previously said it was considering filing for bankruptcy if it could not raise cash amid the liquidity crisis. This is the same situation as the cryptocurrency exchange FTX filed for Chapter 11 in November. Bloomberg reported that Genesis could file for bankruptcy as soon as this week, citing people familiar with the matter.
The report comes after the U.S. Securities and Exchange Commission announced on Jan. 12 that it had charged Genesis and cryptocurrency exchange Gemini with offering unregistered securities through Gemini’s “earn” program. I was. The company also reported that FTX had around $175 million worth of funding before the exchange went bankrupt in November.
This story is a work in progress and will be updated.