Genesis officially files for bankruptcy

Genesis Global Capital, a cryptocurrency lending company that is part of the Digital Currency Group (DCG), has filed for voluntary bankruptcy.

The bankruptcy filing was filed jointly by parent company Genesis Global Holdco and subsidiaries Genesis Asia Pacific and Genesis Global Capital. They are all owned by DCG, which also owns news portal CoinDesk, asset manager and largest Bitcoin (BTC) investment fund Grayscale, and busiest mining pool Foundry.

Genesis has indicated that it intends to compensate its creditors (affected customers/partners) as part of the restructuring plan. That is if the authorities accept his bankruptcy filing. “These applications are expected to be approved by the court in the coming days,” they noted.

To compensate its creditors, the company calculated that it had $150 million in cash to provide liquidity. Although the claims of some of his creditors run into large numbers, it remains questionable whether they will be able to get all their money at some point.

In November 2022, the price of bitcoin collapsed to a minimum in the last two years.