Two of Genesis’ financing subsidiaries, Genesis Global Capital and Genesis Asia Pacific, have filed for Chapter 11 bankruptcy.
by Presentationthe company aims to enact “a global resolution to maximize value for all clients and stakeholders and strengthen the business for the future.”
In November 2022, Genesis Global Capital ceased operations and froze withdrawals amid a liquidity crisis resulting from the implosion of the FTX cryptocurrency exchange. The lending division is FTX’s largest unsecured lender, with claims he surpassed $226 million.
Bitcoin Magazine PRO explained that the company needed a liquidity injection of at least $1 billion to save itself, but this never happened. In January 2023, Genesis’ parent company, Digital Currency Group, announced from Gemini’s President Cameron Winklevoss that they would use Genesis in sophisticated high-yield schemes and transfer the high risk of these yield-producing investments to Gemini’s Earn product users. was denounced as Gemini Earn was earning this yield through his Genesis. Winklevoss said in a statement that it believed Gemini to be a reputable trading partner.
“Genesys has proposed a roadmap to its exit that includes a Chapter 11 plan that calls for a framework for the global resolution of all claims through trusts that distribute assets to creditors,” the filing explains. increase. “All aspects of the restructuring process will be overseen by an independent special committee of the company’s board of directors.”
Genesis Interim CEO Derar Islim said: -Court restructuring presents the most effective means to protect assets and produce the best possible outcome for all Genesis stakeholders. “
According to the filing, Genesis has more than $150 million in cash on hand, which “will provide ample liquidity to support ongoing business operations and expedite the restructuring process. .”