Crypto firm Genesis may declare bankruptcy this week

According to Bloomberg, the brokerage company Genesis Global Capital is preparing to declare bankruptcy this week. Currently, the amount of Genesis' debt is $ 3 billion, and if the situation is not resolved in the near future, the company’s management will declare its own bankruptcy.

It should be noted that there is no official information from Genesis representatives at the time of writing, Bloomberg cites its own anonymous sources close to the company. There is speculation that to save Genesis, its parent company DCG will sell some of its assets.

The problems of the cryptocurrency conglomerate Digital Currency Group, which includes the broker Genesis, the Gemini exchange, and the CoinDesk news portal, have worsened after the collapse of the FTX cryptocurrency exchange. Back in November, Gemini stopped withdrawing client funds from the Earn project. Problems with withdrawals and servicing current obligations arose immediately after the FTX bankruptcy.

According to the company, Gemini’s credit partner in the Earn program, Genesis Global Capital, has suspended withdrawals and is unable to fulfill its obligations to clients. Later, Genesis admitted that the company’s derivatives division had lost access to about $ 175 million in blocked funds on the FTX trading account. The panic caused by the sharp fall of the FTX exchange provoked a massive request for withdrawal of assets among Genesis clients.