Cryptocurrency broker Genesis has filed for bankruptcy the company
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Cryptocurrency broker Genesis has filed for bankruptcy – the company owes billions of dollars

Cryptocurrency broker Genesis Global Capital, which was facing a liquidity problem following the collapse of crypto exchange FTX, initiated bankruptcy proceedings. The company has more than 100,000 creditors with total liabilities ranging from $1.2 billion to $11 billion, according to filings with the regulator.

    Image source: Kanchanara/unsplash.com

Image source: Kanchanara/unsplash.com

company filed a US Chapter 11 bankruptcy filing Thursday night in the US Bankruptcy Court for the Southern District of New York. Genesis Global Holdco (the parent company of Genesis Global Capital) and Genesis Asia Pacific Pte, also part of billionaire Barry Silbert’s Digital Currency Group (DCG), have filed similar lawsuits. Their liabilities to creditors are estimated at $100 million and $500 million, respectively.

The statement said other subsidiaries of the holding company engaged in derivatives, spot trading and custody business, as well as Genesis Global Trading, will continue trading operations with clients as usual.

According to the bankruptcy filing, Genesis Global Capital owes $3.5 billion to its top 50 creditors, including the Gemini cryptocurrency exchange, Cumberland, Mirana, MoonAlpha Finance, and the VanEck New Finance Income Fund.

Genesis Global Capital provided hedge fund Three Arrows Capital (3AC), which filed for bankruptcy in July, and Sam Bankman-Freed (Sam Bankman-Fried ) and is closely associated with its FTX exchange. However, Alameda Research repaid the loan in August.

Due to liquidity issues, Genesis Global Capital stopped withdrawing funds to clients in November last year.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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