Jan 18 (Reuters) – Cryptocurrency loaner Genesis Global Capital is looking to file for bankruptcy in the coming week according to Bloomberg News. Sources familiar with the situation have come forward with details.
The crypto loaner had already stopped customer redemptions, and bankruptcy filings were anticipated in the weeks following the crash of major crypto trading platform FTX on November 16.
Several casualties were reported, including crypto lender BlockFi and Core Scientific Inc, one of the most prominent publicly traded crypto mining companies in the US. This was followed by bankruptcy filings in the US.
According to The Digital Currency Group, Genesis’ parent, creditors have been unable to come to an agreement, despite exchanging proposals. Bloomberg has reported that Kirkland & Ellis and Proskauer Rose have advised creditor groups.
Genesis did not respond to a Reuters request for comment.
Genesis is also involved in a dispute with Gemini, founded by the Winklevoss twins. The crypto lender offered a product called Earn in partnership with Genesis, and now Gemini claims that Genesis owes them $900 million.
The US Securities Exchange Commission charged Genesis and Gemini last week for illegally selling securities to thousands of investors through their crypto lending program.
Reporting By Niket Nishant Mehnaz Yasmin In Bengaluru; Edited By Sriraj Kalluvila
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