Crypto trader Genesis Global Capital may file for bankruptcy this week. This is reported by various American media, including Bloomberg and the Financial Times. The crypto company ran into financial problems when the FTX crypto exchange collapsed.
Genesis is according to FT and Bloomberg currently negotiating with creditors. Any bankruptcy settlement would include cash and stock in Digital Currency Group, Genesis’ parent company. The deal could be completed as early as this week, sources say to the media. DCG and Genesis have not yet responded to the messages.
The crypto company has been negotiating with creditors for months. The company faced liquidity problems in November. Customers of the company have been unable to access their money since mid-November. The company owes a total of more than 3 billion dollars to various parties, including 280 million euros to Bitvavo, the largest crypto exchange in the Netherlands.
Genesis’ financial problems arose shortly after the FTX crypto exchange collapsed. The bankruptcy of that exchange led to financial problems for several other crypto companies. BlockFi and Core Scientific previously filed for bankruptcy protection. Sam Bankman-Fried, the founder and former CEO of FTX, was arrested late last year. html”>arrested in the Bahamas. He is suspected of billions of customers have siphoned away.
