Genesis is about to meet its end
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Genesis, a crypto lending firm that is part of the Digital Currency Group (DCG), may be filing for bankruptcy after they failed to reach a deal with their creditors. Many online media outlets, such as Yahoo Finance and Bloomberg, have been covering this topic.
According to close sources, it is possible that they will be filing for bankruptcy this week. The warning sign was sent around November when they stopped their customers from withdrawing as FTX fell apart.
Genesis and DCG have been trying to make arrangements with their creditors, but all their efforts have failed so far.
The news going around is that Genesis and the unsettled creditors are considering pleading for a Chapter 11 bankruptcy.
The scary part of all this is that, in addition to not having the money to settle their creditors, there are talks of DCG having to pay Genesis' creditors after a one to two year period.
Besides the fact that Genesis was already suffering from the fall of FTX, it is very possible that its creditors will suffer in a similar manner.
According to Gemini, it has close to $900 million in customer funds in Genesis. The name of the program that Gemini put together was Gemini Earn, and now its customers cannot get their money out.
All of this has brought about conflict between the two parties, but to make matters worse, both Gemini and Genesis are facing charges from the United States Securities and Exchange Commission for offering unregistered investments.
On the 4th of this month, the Genesis CEO said that it needed time to sort out the matter and the next day they let go of 30% of their workers.
Right now, the whole market is doing what it is known for, fluctuating around itself. It really sucks to be losing more establishments when I could have sworn we would be riding into the sunset.
What do you think the next few weeks will look like? I hope you were able to take some profit with you?
Let me know what you think in the comment section below.
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