Finally Crypto Lender Genesis Filed for Chapter 11 Bankruptcy
After the collapse of FTX, it becomes obvious that crypto lender Genesis is in trouble. And the financial situation of this company is worse than many people think. They stopped withdrawals from their platform in November 2022.
Now finally Genesis filed for Chapter 11 bankruptcy in New York federal district court. What people thought about Genesis was not FUD. Those FUD are facts and Genesis shows its true color in the end.
Three Arrows Capital and crypto exchange FTX went out of business and declared bankrupt in 2022. Now losing a huge amount of money Genesis followed in their footsteps. Maybe it seems like a nightmare, but this is happening for real.
People's trust in centralized crypto platforms is at an all-time low now. Those centralized crypto platforms failed miserably and people lose a lot of money who have any exposure to this directly or indirectly.
People who participate in Gemini earn program are in trouble. Gemini crypto exchange cannot deny its responsibility. Before making the deal with Crypto lender Genesis to launch Gemini earn program, they should have been more careful in doing due diligence.
This bear market makes it clear how much trust you can put in any centralized crypto platform. When you hear that the platform is highly regulated and has a good reputation, you think they will not do anything wrong. They will manage the risk and will not get their customers in trouble.
It seems Gemini co-founder Cameron Winklevoss considers Genesis's bankruptcy as good news. It is expected that Gemini users will get their funds back. People's money is used to run the bankruptcy process. Bankruptcy lawyers make more money and change their financial situation in this process.
The thing is, most centralized crypto platforms are related to each other or have some sort of exposure directly or indirectly. When one crypto platform collapses, it takes down others along with it. It does not become obvious until it's too late. Then you have nothing to do except see yourself getting rekt.
When any centralized crypto platform offers any passive earning opportunity, jumping on it without considering how much risk you are taking is a big mistake. We saw how passive earning opportunities offered by lending platforms like Celsius, BlockFi, and Voyager ended up.
When you get passive earning offers from highly regulated and trusted centralized crypto exchanges, you cannot say there is no risk. This is a big lesson. People will not fall into the same trap again if they learn from their mistakes.
Things will improve and get better eventually. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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About Me
Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. I'm glad to meet amazing people all over the world.
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