Cryptocurrency lending platform Genesis Global Capital, a subsidiary of Digital Currency Group (DCG), plans to file for bankruptcy very soon. According to Bloomberg, Genesis may file for bankruptcy this week.
The US Securities and Exchange Commission (SEC) has recently indicted both Gemini and Genesis for violating securities laws through offerings linked to Gemini’s Earn program. Currently experiencing a liquidity crunch, Genesis may file for bankruptcy in the next few days.
Genesis halted withdrawals and lending processes in Nov. 2022 after the fall of FTX. And this move affected cryptocurrency firms including global crypto asset platform Gemini and its Earn program.
In early January, the WSJ reported that Genesis began working with investment bank Moelis & Co. to evaluate its options, including a Chapter 11 bankruptcy.
