{"id":541286,"date":"2023-01-20T07:45:56","date_gmt":"2023-01-20T04:45:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-lender-genesis-files-for-chapter-11-bankruptcy\/"},"modified":"2023-01-20T07:45:56","modified_gmt":"2023-01-20T04:45:56","slug":"crypto-lender-genesis-files-for-chapter-11-bankruptcy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-lender-genesis-files-for-chapter-11-bankruptcy\/","title":{"rendered":"# Crypto lender Genesis files for Chapter 11 bankruptcy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d23240c613\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d23240c613\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-lender-genesis-files-for-chapter-11-bankruptcy\/#%E2%80%9D_Crypto_lender_Genesis_files_for_Chapter_11_bankruptcy_%E2%80%9C\" >&#8221; Crypto lender Genesis files for Chapter 11 bankruptcy &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_lender_Genesis_files_for_Chapter_11_bankruptcy_%E2%80%9C\"><\/span>&#8221; Crypto lender Genesis files for Chapter 11 bankruptcy &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMmRkMzQ0YzQtNGYxOC00MWZiLTg3YzItNGVjOWFiNTk1OTMxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>Cryptocurrency lender Genesis has filed for Chapter 11 bankruptcy in the Southern District of New York.<\/p>\n<p>The firm has estimated liabilities of $1 billion to $10 billion and assets in the same range, according to the Jan. 19 filing.<\/p>\n<p>Earlier reports claimed the company had been considering filing for\u00a0bankruptcy protection if it was unable to raise capital to stem its liquidity crisis. <\/p>\n<p>In a Jan. 19 press release, Genesis <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20230119005955\/en\/\">said<\/a> it had been engaged in discussions with its advisors &#8220;to its creditors and corporate parent Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward.\u201d<\/p>\n<blockquote><p>\u201cGenesis has now commenced a court-supervised restructuring process to further advance these discussions.\u201d<\/p><\/blockquote>\n<p>The company\u2019s Chapter 11 plan sees it contemplating a \u201cdual track process\u201d pursuing a \u201csale, capital  raise, and\/or an equitization transaction&#8221; that would <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arently enable the business &#8220;to  emerge under new ownership.\u201d<\/p>\n<p> The derivatives, spot trading, broker-dealer and custody businesses of Genesis are not part of the Chapter 11 proceedings and will continue operations according to the firm.<\/p>\n<p>It also claimed to have more than $150 million in cash on hand that it believes &#8220;will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process.&#8221;<\/p>\n<p>The restructuring process will be led by an &#8220;independent special committee&#8221; of the company&#8217;s board of directors, and Genesis\u00a0says the process is aimed at providing &#8220;an optimal outcome for Genesis clients and Gemini Earn users.&#8221;<\/p>\n<p>The firm suspended withdrawals from its platform in November 2022 amid market turbulence caused by the collapse of FTX. The move impacted users of Gemini Earn, a yield-bearing product for users of the Gemini cryptocurrency exchange managed by Genesis.<\/p>\n<p><em><strong>Related: Gemini and Genesis\u2019 legal troubles stand to shake up industry further<\/strong><\/em><\/p>\n<p>Gemini co-founder Cameron Winklevoss tweeted the bankruptcy is a &#8220;crucial step&#8221; toward Gemini users being able to recover their assets but claimed DCG and its CEO Barry Silbert &#8220;continue to refuse to offer creditors a fair deal&#8221; and threatened to file a lawsuit &#8220;unless Barry and DCG come to their senses.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">6\/ Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.<\/p>\n<p>\u2014 Cameron Winklevoss (@cameron) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cameron\/status\/1616302998736756737?ref_src=twsrc%5Etfw\">January 20, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Both Genesis and Gemini are facing charges from the United States Securities and Exchange Commission (SEC) for allegedly offering unregistered securities through the Earn program.<\/p>\n<p>Fears are mounting over Genesis&#8217; parent company DCG as it may have to sell part of its $500 million venture capital portfolio to try to offset Genesis&#8217; liabilities. <\/p>\n<p>On Jan. 17, DCG halted dividend payments in a move aimed at &#8220;reducing operating expenses and preserving liquidity.\u201d The sale of its crypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> outlet CoinDesk is also reportedly being weighed which could net DCG $200 million.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-lender-genesis-files-for-bankruptcy\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto lender Genesis files for Chapter 11 bankruptcy &#8220; Cryptocurrency lender Genesis has filed for Chapter 11 bankruptcy in the Southern District of New York. The firm has estimated liabilities of $1 billion to $10 billion and assets in the same range, according to the Jan. 19 filing. Earlier reports claimed the company had&#8230;<\/p>\n","protected":false},"author":1,"featured_media":541287,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/2dd344c4-4f18-41fb-87c2-4ec9ab595931.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[90192,4978,117],"class_list":["post-541286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-digital-currency-group","tag-bankruptcy","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/541286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=541286"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/541286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/541287"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=541286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=541286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=541286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}