Genesis Global Filed For Chapter 11 Bankruptcy Protection
Key Points:
- Genesis Global filed for Chapter 11 bankruptcy protection in New York federal district court.
- Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC filed a trio of voluntary petitions with the bankruptcy court.
- In its filing, Genesis Global Capital, the partner firm to Gemini’s defunct Earn program, estimated more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets.
Genesis Global filed for Chapter 11 bankruptcy protection in New York federal district court.
Three voluntary applications were submitted to the bankruptcy court by Genesis Global Holdco, LLC, Genesis Asia Pacific Pte. Ltd., and Genesis Global Capital, LLC. All three fall under the umbrella of Digital Currency Group (DGC), the company is in trouble after the collapse of FTX. Genesis’s other subsidiaries are involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continues client trading operations.
The partner company to Gemini’s now-defunct Earn program, Genesis Global Capital, projected more than 100,000 creditors and between $1 billion and $10 billion in liabilities as well as assets in its filing. The assets and liabilities of the other two companies were believed to be between $100 million and $500 million, respectively.
According to the bankruptcy petition released late Thursday, Genesis owes more than $3.5 billion to its top 50 creditors, including cryptocurrency exchange Gemini, trading behemoth Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
Genesis Global Capital stated in its statement that it anticipates that after the reorganization, there would be enough money left over to pay unsecured creditors.
Customers of a yield product offered by the Winklevoss brothers’ cryptocurrency exchange, Gemini, were harmed when Genesis Global Capital was compelled to restrict client withdrawals shortly after FTX fell into its own bankruptcy case in November.
There was mounting pressure on Genesis and its parent firm DCG to honor $900 million in locked deposits. Genesis said earlier this month that it would reduce its workforce by 30%.
Due to the fact that Genesis and digital asset management Grayscale are owned by the same parent company in DCG, the bankruptcy filing on Thursday may have wider ramifications for Bitcoin.
Grayscale runs the Grayscale Bitcoin Trust (GBTC), which manages assets worth more than $10 billion and was trading at a record discount to net asset value as of late last year. Market participants are concerned that the effects of the Genesis bankruptcy may possibly result in the liquidation of GBTC’s assets of more than 600,000 Bitcoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
News
Genesis Global Filed For Chapter 11 Bankruptcy Protection
Key Points:
- Genesis Global filed for Chapter 11 bankruptcy protection in New York federal district court.
- Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC filed a trio of voluntary petitions with the bankruptcy court.
- In its filing, Genesis Global Capital, the partner firm to Gemini’s defunct Earn program, estimated more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets.
Genesis Global filed for Chapter 11 bankruptcy protection in New York federal district court.
Three voluntary applications were submitted to the bankruptcy court by Genesis Global Holdco, LLC, Genesis Asia Pacific Pte. Ltd., and Genesis Global Capital, LLC. All three fall under the umbrella of Digital Currency Group (DGC), the company is in trouble after the collapse of FTX. Genesis’s other subsidiaries are involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continues client trading operations.
The partner company to Gemini’s now-defunct Earn program, Genesis Global Capital, projected more than 100,000 creditors and between $1 billion and $10 billion in liabilities as well as assets in its filing. The assets and liabilities of the other two companies were believed to be between $100 million and $500 million, respectively.
According to the bankruptcy petition released late Thursday, Genesis owes more than $3.5 billion to its top 50 creditors, including cryptocurrency exchange Gemini, trading behemoth Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
Genesis Global Capital stated in its statement that it anticipates that after the reorganization, there would be enough money left over to pay unsecured creditors.
Customers of a yield product offered by the Winklevoss brothers’ cryptocurrency exchange, Gemini, were harmed when Genesis Global Capital was compelled to restrict client withdrawals shortly after FTX fell into its own bankruptcy case in November.
There was mounting pressure on Genesis and its parent firm DCG to honor $900 million in locked deposits. Genesis said earlier this month that it would reduce its workforce by 30%.
Due to the fact that Genesis and digital asset management Grayscale are owned by the same parent company in DCG, the bankruptcy filing on Thursday may have wider ramifications for Bitcoin.
Grayscale runs the Grayscale Bitcoin Trust (GBTC), which manages assets worth more than $10 billion and was trading at a record discount to net asset value as of late last year. Market participants are concerned that the effects of the Genesis bankruptcy may possibly result in the liquidation of GBTC’s assets of more than 600,000 Bitcoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Other Posts
Related Posts
Latest
$2.9M Raised, 214M Tokens Sold: Why Qubetics, Arbitrum, and Stacks Are the Best Cryptos to Buy Today?
BlockDAG’s $20M Surge in 48 Hrs Powers It Towards $600M, as Ethereum Faces Resistance and Cardano Shows Potential
Press Release
$2.9M Raised, 214M Tokens Sold: Why Qubetics, Arbitrum, and Stacks Are the Best Cryptos to Buy Today?
BlockDAG’s $20M Surge in 48 Hrs Powers It Towards $600M, as Ethereum Faces Resistance and Cardano Shows Potential
