Crypto lender Genesis prepares to file for bankruptcy, reports Bloomberg News

Jan 18 (Reuters) – Cryptocurrency lender Genesis Global Capital plans to file for bankruptcy as soon as this week, Bloomberg News reported on Wednesday, citing people with knowledge of the situation.

A bankruptcy filing has been expected for weeks, after the company froze customer redemptions on November 1. 16 following the fall of leading cryptocurrency exchange FTX.

The collapse of FTX in November claimed several victims, including crypto lender BlockFi and Core Scientific Inc, one of the largest publicly traded crypto mining companies in the United States, who both filed for termination. bankrupt in the following months.

Genesis, its parent company Digital Currency Group and creditors have exchanged several proposals, but have so far failed to reach an agreement, according to the Bloomberg report, adding that Kirkland & Ellis and Proskauer Rose advised groups of creditors.

Genesis did not immediately respond to a request for comment from Reuters.

Genesis is also locked in a dispute with Gemini, founded by identical twin crypto pioneers Cameron and Tyler Winklevoss.

Gemini offered a crypto loan product called Earn in partnership with Genesis, and now says Genesis owes it $900 million in connection with that product.

The U.S. Securities and Exchange Commission said last week that it accused Genesis and Gemini of illegally selling securities to hundreds of thousands of investors through their crypto lending program.

Reporting by Niket Nishant and Mehnaz Yasmin in Bengaluru; Editing by Sriraj Kalluvila

Our standards: The Thomson Reuters Trust Principles.

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