Jan 18 (Portal) – Cryptocurrency lender Genesis Global Capital plans to file for bankruptcy later 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 Nov. 16 following the collapse of major cryptocurrency exchange FTX.
FTX’s collapse 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, both of which filed for bankruptcy protection in the months that followed.
Genesis, its parent company Digital Currency Group and creditors have exchanged several proposals but have so far come to no agreement, the Bloomberg report said, adding that Kirkland & Ellis and Proskauer Rose advised creditor groups.
Genesis did not immediately respond to a Portal request for comment.
Genesis is also embroiled in a feud with Gemini, founded by identical crypto pioneer twins, Cameron and Tyler Winklevoss.
Gemini partnered with Genesis to offer a crypto lending product called Earn and now says Genesis owes it $900 million in connection with that product.
The U.S. Securities and Exchange Commission said last week it had accused Genesis and Gemini of illegally selling securities to hundreds of thousands of investors through its crypto lending program.
Reporting by Niket Nishant and Mehnaz Yasmin in Bengaluru; Edited by Sriraj Kalluvila
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