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| Crypto Broker Genesis |
Crypto broker Genesis is reportedly preparing to file for bankruptcy as soon as this week, as the company works towards a deal with creditors after months of negotiations. This news follows the recent implosion of Sam Bankman-Fried’s FTX exchange, which has sent shockwaves through the digital asset industry.
According to sources familiar with the matter, Genesis has been in talks with creditors since November, owing more than $3 billion to various parties, including $900 million to customers of the Winklevoss twins’ crypto exchange Gemini, and €280 million to Dutch exchange Bitvavo.
In an effort to avoid a full-fledged bankruptcy, the company is currently negotiating a pre-packaged bankruptcy deal with creditors that would include cash and equity in Digital Currency Group (DCG), Genesis' parent company which is backed by SoftBank. The deal is expected to be finalized as soon as this week.
The company's troubles began soon after the collapse of FTX, as Genesis, which was one of the largest lenders in the crypto market, halted customer withdrawals citing “unprecedented market turmoil” and liquidity issues. Since then, the company has been struggling to find fresh funding.
Genesis and DCG have not yet commented on the reports of the impending bankruptcy filing. The crypto industry continues to face challenges as more companies struggle to stay afloat in the face of market volatility and decreased trading volume.
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