Crypto firm Genesis announces its own bankruptcy

The brokerage company Genesis Global Capital has announced its own bankruptcy. According to BusinessWire, Genesis has about 100,000 creditors.

The amount of the firm’s debt ranges from $ 1.1 billion to $ 13 billion. Although yesterday Bloomberg journalists reported only $ 3 billion of debt. The largest creditors of Genesis are USDC Circle and Gemini Exchange.

«We will continue our dialogue with both DCG and our creditors' advisors as we seek to maximize value and try to best prepare our business for the future,» said Genesis CEO Derar Islam.

The problems of the cryptocurrency conglomerate Digital Currency Group, which includes the brokerage Genesis, the Gemini exchange, and the news portal CoinDesk, 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.