1 year ago
Genesis Global — a Digital Currency Group (DCG) subsidiary — filed for Chapter 11 bankruptcy extortion connected Jan. 19 successful the bankruptcy tribunal of the Southern District of New York, it said successful a property release.
The derivatives, spot trading, broker-dealer, and custody arms of Genesis are not portion of the bankruptcy filing and are operating normally, the steadfast said.
Restructuring
Under Chapter 11, the steadfast is considering restructuring, which volition beryllium led by an autarkic peculiar committee of the committee of directors, it said.
The steadfast has betwixt $1 cardinal and $10 cardinal successful assets and liabilities, according to the press release. Genesis said it has implicit $150 cardinal successful cash, providing “ample liquidity” to enactment its concern operations and the restructuring process.
The court-supervised restructuring volition “provide an optimal result for Genesis clients and Gemini Earn users,” the steadfast said. Genesis owes $900 cardinal to Gemini Earn users.
The crypto lender is exploring a “dual way process” to prosecute “sale, superior rise and/or equitization transaction that would alteration the concern to look nether caller ownership,” it said.
Genesis volition commencement a selling and merchantability process for its assets oregon rise superior and usage the proceeds to wage backmost creditors. However, if the steadfast fails to adjacent a merchantability oregon rise capital, creditors volition person ownership interests successful Reorganized Genesis Global, according to the property release.
The steadfast had been trying to rise superior for months without immoderate results. Its genitor steadfast DCG was reportedly considering liquidating its task superior holdings to screen Genesis’ $3 cardinal indebtedness burden.
Genesis froze lawsuit withdrawals successful November, soon aft the illness of FTX. Earlier this month, the steadfast slashed its workforce by 30%.
The station Genesis Global caves to liquidity issues and files for Chapter 11 bankruptcy appeared archetypal connected CryptoSlate.
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