Genesis Global Holdco, the parent company of cryptocurrency lending company Genesis Global Capital, has filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. As part of the filing, Genesis has proposed a roadmap to an exit that calls for a framework for a global resolution of all claims through a trust that will distribute assets to creditors, with the restructuring process overseen by an independent special board committee. The company said that it had $150m cash to support the restructuring.
Genesis Global Capital suspended withdrawals last November, soon after the collapse of Sam Bankman-Fried’s cryptocurrency exchange FTX, where it held some of its funds. Its other subsidiaries in the derivatives, spot trading, and custody businesses, as well as Genesis Global Trading are not included in the filing and continue client trading operations.
Earlier this month, the US Securities and Exchange Commission filed charges against Genesis Global Capital over the unregistered offer and sale of securities to retail investors through its Gemini Earn cryptocurrency asset lending programme. The SEC said Genesis raised billions of dollars’ worth of cryptocurrency assets from hundreds of thousands of investors through this unregistered offering.
In July, the $10bn Singapore-based cryptocurrency hedge fund Three Arrows Capital collapsed and filed for bankruptcy protection. This prompted Genesis Global Trading to file a $1.2bn claim against the now insolvent Three Arrows Capital.
عبدالرحمان زمین پیما
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آرمان جعفری
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