Crypto Lender Genesis files for bankruptcy

by Ana Lopez

After months of speculation that it would make the move, Crypto lending giant Genesis has filed for Chapter 11 bankruptcy protection in a Manhattan federal court, listing more than 100,000 creditors and liabilities ranging from $1.2 billion to $1.2 billion. 11 billion. The filing comes just days after the Securities and Exchange Commission (SEC) sued Genesis and the Winklevoss twins’ Gemini cryptocurrency exchange over an unregistered securities offering.

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Like CNBC reports, the collapse of FTX has created a ripple effect throughout the crypto industry, with clients looking for withdrawals on various exchanges. Digital Currency Group (DCG), the parent company of Genesis, owes creditors more than $3 billion and suspended dividends this week. according to to CoinDesk. The company was also forced to assume liability following the $1 billion collapse of 3AC.

The bankruptcy filing and SEC lawsuit are just the latest grim developments in the crypto industry, which has seen several high-profile collapses in recent months, leading to increased scrutiny of crypto lending and other digital currency-related businesses and calls for more regulation and supervision in the sector.

Cameron Winklevoss, who co-founded Gemini with his twin brother Tyler, said on Twitter that Barry Silbert, the CEO of Digital Currency Group, is refusing to “give creditors a fair deal,” prompting legal action to bring more transparency to the situation.

This is just one example of the escalating tensions between leading names in crypto as the industry continues to evolve and expand. It remains to be seen how the bankruptcy proceedings will play out and what the future holds for Genesis, exchanges such as Gemini, and other crypto lending companies.

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