Another Cryptocurrency Firm Goes Bankrupt As FTX Fallout Continues

Genesis Global Holdco filed for bankruptcy in bankruptcy court several weeks after another company. cryptocurrency FTX sudden implosion

The bankruptcy petitions were filed by the United States Bankruptcy Court, Southern District of New York, for the company and its two subsidiaries, Genesis Global Capital Capital and Genesis Asia Pacific. Genesis Global Trading and the other subsidiaries will continue to operate.

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” Derar Islim, Genesis Interim CEO, made the following comment in a press release.

The company may be in the process of restructuring, which could include a capital raising or another transaction that could enable the business’s emergence under new management. “We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders,” Paul Aronzon, an independent director at Genesis, was also added.

Digital Currency Group is the owner of the company. It also invests in Coinbase and a number of other cryptocurrency companies. Genesis had ceased withdrawals New loan originations and new loans were initiated two months ago. Company leadership was reportedly in talks with Binance to invest.

Reports revealed that Sam Bankman Fried, ex-CEO of FTX had commingled money between Alameda Research and its sister trading platform Alameda Research. BlockFi, a lending platform, filed for bankruptcy FTX declared bankruptcy just days after the insolvency, but Voyager & Celsius had filed for bankruptcy months prior to that as the sector was still young and experienced a bearish market.

60% of Americans view cryptocurrency investments now as a potential risk. “high,” According to a survey CNBC and Momentive conducted the survey. CNBC and Momentive. 26% of respondents consider cryptocurrencies moderately risky. Only 10% believe cryptocurrencies are safe. “little” No risk.

Bankman-Fried was convicted not guilty This month, eight charges were filed against Mark Cohen. These include conspiracy and securities fraud conspiracy, conspiracy to commit wire fraud and conspiracy defrauding the Federal Election Commission by campaign finance violations. Mark Cohen is a Bankman-Fried attorney who was previously defended Ghislaine Minwell, a Jeffrey Epstein confidant, requested that U.S. district Judge Lewis Kaplan allow the sealing of names and addresses of two individuals who had secured a $250 Million bond for Bankman-Fried.

Coinbase last week announced plans to expand its business. dismiss Around 20% of workers were affected for the second time within seven months. Brian Armstrong, Coinbase CEO, said in a message To employees that “unscrupulous actors in the industry” There is also the possibility of “further contagion” The company faces immediate difficulties. He said, however, that the failure of a “large competitor” The increased “regulatory clarity” The long-term positive effects of the collapse of FTX will be good for his company.

In fact, lawmakers have called for more scrutiny of the cryptocurrency industry after the bankruptcy filings of FTX. Senators considered Various proposals to increase regulation of digital asset markets were made by Rostin Behnam (Commodity Futures Trading Commission Chairman), while House of Representatives members are also involved. discussed John Ray III, attorney representing FTX in bankruptcy proceedings