2023-01-19
Genesis Global Capital, a cryptocurrency lending company and a subsidiary of Crypto Conglomerate Digital Currency Group, is reportedly preparing to file for bankruptcy this week.
According to a Jan. 18 Bloomberg report, Genesis previously said it was considering filing for bankruptcy if it failed to raise cash amid a liquidity crisis — a scenario similar to FTX in November— with Bloomberg news agency reporting that Genesis could file for bankruptcy later this week.
The report follows the U.S. Securities and Exchange Commission announced on Jan. 12 that it had sued Genesis and Gemini trading sites over an offering of unregistered securities through Gemini's "Earn" program.
Gemini co-founder Cameron Winklevoss has also issued several open letters online, calling on Digital Currency Group CEO Barry Silbert. It claimed that Genesis owed Gemini $900 million for money Gemini borrowed as part of the same project, and DCG came forward to say Winklevoss' allegations were "malicious, deceptive and defamatory attacks."
Ref. Digital Currency Group on Twitter
Genesis withheld withdrawals after FTX's bankruptcy filings, which, if the company also filed for bankruptcy, would be the latest in a string of changes to Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, FTX and BlockFi.
Source Link: cointelegraph
Photo Credit: Link
