Genesis Crypto Lending Unit Files For Bankruptcy In The US
Jan 19 (Reuters) – Crypto firm Genesis’s lending unit filed for U.S. bankruptcy protection against creditors on Thursday, overturned by a market rout with the likes of exchange FTX and from the BlockFi lender.
Genesis Global Capital, one of the biggest crypto lenders, froze client redemptions on November 16 after FTX stunned the financial world with its bankruptcy, fueling fears that other companies could implode. The company is owned by venture capital firm Digital Currency Group (DCG).
Genesis’ lending unit said it had both assets and liabilities of between $1 billion and $10 billion in filings with the US bankruptcy court.
Genesis’ bankruptcy filing is the latest in a cascade of crypto failures and heavy job cuts triggered by falling prices last year.
Reporting by Tom Hals in Wilmington, Delaware and Akanksha Khushi; Editing by Lananh Nguyen and Clarence Fernandez
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