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Genesis Crypto Firm Will Soon File for Bankruptcy!! Here's Why?

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Shivam Soni
Updated On

Genesis is a global capital firm that connects institutional investors to digital asset markets. The crypto lender has finally decided to file for bankruptcy, trapped in the crypto winter sessions. The Digital Currency Group (DCG) has confirmed that crypto lender has stopped paying dividend payments.

The company is focusing on refining its balance sheet by reducing its expenses. The company suffered a major loss after FTX crashed a few months ago. It maintained lending relationships with the FTX, but they were unaware of the loss that was subjected to the crypto exchange.

According to reports from Bloomberg; the company had funds of $175 million locked in the FTX trading account. The company has been hit with a significant loss due to the FTX crash and they are willing to file bankruptcy.

Genesis
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Will Genesis and DCG Cease

The Securities and Exchange Commission charged two companies, Genesis and Gemini, with selling securities to retail investors without registering their offers. They raised hundreds of thousands of dollars worth of cryptocurrency assets through this unregistered deal from investors.

DCG, the parent company of the crypto lender, has also suffered significant losses in the process. DCG is also going through hard times and is dealing with a liquidity crunch. Genesis is also in a dispute with Gemini, owned by the Winklevoss brothers. Gemini offered a crypto-lending product called Earn with Genesis. Genesis says it owes $900 million for the product.

https://twitter.com/DataAugmented/status/1615982921239916544?s=20&t=8KsT0VMCevCnY6K8-nqKLg

Also Read: 8 Top Crypto Frauds That Caused Loss of Over $3 Billion!!

DCG Gemini Genesis cryptocurrency