Cryptocurrency exchange Genesis has officially filed for bankruptcy in America. Rumors have been circulating about this for a long time. The Dutch Bitvavo is therefore hit hard. That company has not yet signed an agreement with Genesis.
Genesis has bankruptcy protection filed through so-called Chapter 11 proceedings in the United States. This has been done by both main company Genesis Global Holdco LLC and two subsidiaries, Genesis Global Capital and Genesis Asia Pacific. With such a Chapter 11 procedure, the company draws up a plan to recover as much money as possible from investors. Genesis says it has about $150 million in cash with which it wants to try to implement a restructuring. In addition, the company has between one and ten billion dollars in assets, but also claims to have more than 100,000 creditors.
With the bankruptcy rumors from earlier this week confirmed. Genesis has been suffering from liquidity problems since November that arose due to the crash of the FTX trade exchange.
The Dutch trading platform Bitvavo, among others, may be in trouble due to the bankruptcy. Bitvavo had more than 280 million euros deposited with Genesis. It is not clear if or when that money will be returned. Bitvavo writes in a comment that it is in talks with the bankruptcy receiver, but those talks have not yet led to an agreement.
