Following the demise of the cryptocurrency exchange FTX, other businesses in the crypto space have also filed for Chapter 11 bankruptcy protection with the most recent being crypto lender Genesis global.
Since the demise of the cryptocurrency exchange FTX, Genesis has seen significant withdrawals and significant liquidity problems. Genesis also has $175 million of its own stranded on FTX due to the fall and insolvency of the cryptocurrency exchange.
Last month, Genesis had to halt withdrawals, which put its most important customer, Gemini, in danger. Genesis Global has put out a plan for a departure via Chapter 11 bankruptcy that offers a structure for international settlement and trust to distribute assets to its creditors. Independent director at Genesis, Paul Aronzon, stated:
“We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders. We look forward to advancing our dialogue with DCG and our creditors’ advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future.”
Genesis Pursuing Creditor Negotiations
Although the creditors and crypto lender Genesis are now in talks, neither party has been successful in reaching a satisfactory conclusion. The cryptocurrency lender now has over $150 million in cash on hand.
It thinks that doing so would enable them to continue their current company activities with plenty of cash while also easing the restructuring process. Genesis and its parent company DCG have been analyzing the best course of action to protect the assets while advancing the company.
DCG, Genesis’ parent company, is trying to sell its media company CoinDesk in light of the present difficulties at Genesis. Charles Hoskinson, the inventor of Cardano, has shown interest in buying media company CoinDesk for around $200 million.
