- Crypto Lender Genesis is planning to file for bankruptcy
- The DCG officially confirmed that it had quit paying dividend payments.
According to reports, Genesis , a cryptocurrency lender, plans to file for bankruptcy as early as this week. Since FTX’s demise and bankruptcy in November, bankruptcy filing has been expected.
As per certain sources, Genesis was discussing a prepackaged bankruptcy plan with its creditors, which would entail striking a restructuring arrangement before filing for bankruptcy. In the bankruptcy court, the agreement would then become legal.
And also the Digital Currency Group’s (DCG) crypto lending division may file this week. The DCG officially confirmed that it had quit paying dividend payments. And informed shareholders that it was concentrating on strengthening its balance sheet by reducing expenses as it dealt with the effects of the FTX meltdown, which was in turn brought on by reporting by one of its
FTX Collapse and the Impact
The FTX collapse may have had a significant impact on the overall crypto market. Several crypto-lenders have filed for bankruptcy, and this is directly related to FTX’s collapse. Genesis stated last year that it had $175 million in funds that have been locked inside its FTX trading account.
Genesis mentioned earlier that the company had trading relationships with the cryptocurrency exchange. But it did not maintain a lending relationship either with FTX or Alameda Research.
Genesis and Gemini charged by the SEC for selling securities to retail investors without registering their offers through the Gemini Earn crypto asset loan scheme. Genesis and Gemini raised hundreds of thousands of dollars worth of cryptocurrency assets through this unregistered deal from investors.
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