{"id":1818907,"date":"2023-01-22T06:50:25","date_gmt":"2023-01-22T11:50:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1818907"},"modified":"2023-01-22T06:54:48","modified_gmt":"2023-01-22T11:54:48","slug":"cryptocurrency-lender-genesis-files-for-bankruptcy-months-after-ftx-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptocurrency-lender-genesis-files-for-bankruptcy-months-after-ftx-collapse\/","title":{"rendered":"Cryptocurrency Lender Genesis Files for Bankruptcy Months After FTX Collapse"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcryptocurrency-lender-genesis-files-for-bankruptcy-months-after-ftx-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1818907&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>Genesis Global, a cryptocurrency lender, filed for bankruptcy Jan. 19, becoming the latest company to file for bankruptcy following the collapse.\u00a0<a href=\"https:\/\/www.theepochtimes.com\/t-ftx\">FTX<\/a> November<\/p>\n<p>The lender announced it had filed for\u00a0Chapter 11 bankruptcy protection in a press release, stating that the move was part of \u201cstrategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.\u201d<\/p>\n<p>The company stated previously that it was currently in discussions with creditors&#8217; advisers to determine the best way for assets to be preserved and to continue the business.<\/p>\n<p>\u201cGenesis has now commenced a court-supervised restructuring process to further advance these discussions and reach a holistic solution for its lending business, which, if achieved, would provide an optimal outcome for Genesis clients and Gemini Earn users,\u201d The company stated.<\/p>\n<p>Genesis Global Holdco as well as two of its lending business subsidiary, Genesis Global Capital Pte. Ltd. filed voluntary bankruptcy petitions at Manhattan federal court.<\/p>\n<p>It noted that the companies were only involved in Genesis\u2019s crypto lending business, adding that the derivatives, spot trading, broker-dealer, and custody businesses of Genesis are not part of the Chapter 11 proceedings and will continue client trading operations.<\/p>\n<figure id=\"attachment_4941036\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/12\/22\/Bankman-Fried-e1671738406114-1200x767.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4941036\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Bankman-Fried-e1671738406114-600x383-1.jpg\" alt=\"FTX founder Sam Bankman-Fried\" width=\"600\" height=\"383\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4941036\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Bankman-Fried-e1671738406114-600x383-1.jpg\" alt=\"FTX founder Sam Bankman-Fried\" width=\"600\" height=\"383\" \/><\/noscript><\/figcaption><\/a> Following his arraignment at New York City on December 22, 2022, Sam Bankman Fried, founder of FTX has been released. (Ed Jones\/AFP via Getty Images).<\/figure>\n<h2>Genesis Hit Hard by \u2018Extraordinary Challenges\u2019<\/h2>\n<p>According to the company bankruptcy is part of a larger restructuring process. \u201croadmap to an exit\u201d Genesis has designed the plan.<\/p>\n<p>The plan \u201ccontemplates a dual track process in pursuit of a sale, capital raise and\/or equitization transaction that would enable the business to emerge under new ownership.\u201d<\/p>\n<p>Genesis said it will begin a\u00a0marketing and sale process to monetize its assets or otherwise raise capital and use the\u00a0transaction proceeds to pay creditors \u201cfairly and equitably.\u201d<\/p>\n<p>Additionally, the crypto lender said it intends to use\u00a0$150 million of cash on hand to fund its ongoing operation and facilitate the\u00a0restructuring process, which will be led by an\u00a0independent special committee, during\u00a0bankruptcy proceedings.<\/p>\n<p>Derar Islim, the company\u2019s interim CEO, noted that\u00a0Genesis has been impacted by\u00a0the \u201crecent extraordinary challenges\u201d The facing the <a href=\"https:\/\/www.theepochtimes.com\/t-cryptocurrency\">cryptocurrency<\/a> industry, including\u00a0the default of Three Arrows Capital and the bankruptcy of FTX.<\/p>\n<p>FTX, led by\u00a0Sam Bankman-Fried,\u00a0filed for\u00a0Chapter 11 bankruptcy in November 2022 amid a liquidity crisis.<\/p>\n<p>This week, creditors for the bankrupt company stated that approximately\u00a0<a href=\"https:\/\/www.theepochtimes.com\/ftx-says-413-million-worth-of-cryptocurrency-was-stolen-from-failed-exchange_4993405.html\">$413 million worth of cryptocurrency<\/a> The company was robbed through \u201cunauthorized transfers.\u201d<\/p>\n<p>Bankman-Fried was arrested in December and pleaded not guilty in January to fraud, conspiracy, violations of campaign finance laws, and money laundering.<\/p>\n<p>He is scheduled to go on trial in\u00a0October.<\/p>\n<p>Bloomberg reports that Genesis included over 100,000 creditors in bankruptcy filings. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-20\/crypto-lender-genesis-files-for-bankruptcy-as-crisis-spreads?srnd=premium\">reported.<\/a> That includes liabilities ranging from\u00a0$1 billion to $10 billion dollars.<\/p>\n<figure id=\"attachment_2377731\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2017\/12\/04\/ET.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-2377731\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/ET-600x360-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"360\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-2377731\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/ET-600x360-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"360\" \/><\/noscript><\/figcaption><\/a> File image showing Tyler Winklevoss (L), and Cameron Winklevoss, co-founders of Winklevoss Capital speaking onstage at TechCrunch Disrupt NY 2015. The Manhattan Center New York City. (Noam Gali\/Getty Images TechCrunch).<\/figure>\n<h2>SEC Files Charges Against Genesis, Gemini<\/h2>\n<p>The firm\u2019s announcement regarding the bankruptcy filing comes shortly after the\u00a0Securities and Exchange Commission (SEC) filed charges against\u00a0Genesis and\u00a0crypto exchange Gemini, which is\u00a0run by billionaire twins, Tyler and Cameron Winklevoss.<\/p>\n<p>The SEC alleges that the two companies partnered up to sell\u00a0unregistered securities to retail investors through the\u00a0Gemini Earn crypto asset lending program.<\/p>\n<p>In November,\u00a0Genesis announced that it would not allow its Gemini Earn investors to withdraw their crypto assets because Genesis lacked sufficient liquid assets that enabled it to do so amid a volatile crypto market prompted by the\u00a0collapse of FTX.<\/p>\n<p>That, the SEC says, led to customers losing millions; at the time\u00a0Genesis held approximately $900 million in investor assets from 340,000 Gemini Earn investors.<\/p>\n<p>\u201cThrough this unregistered offering, Genesis and Gemini raised billions of dollars\u2019 worth of crypto assets from hundreds of thousands of investors,\u201d The SEC stated. \u201cInvestigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.\u201d<\/p>\n<p>On Twitter on Thursday,\u00a0Gemini co-founder Cameron Winklevoss said the company has been \u201cworking\u00a0around the clock to negotiate an acceptable solution\u201d but that Digital Currency Group (DCG), the\u00a0parent company\u00a0of Genesis,\u00a0and its CEO Barry Silbert \u201ccontinue to refuse to offer creditors a fair deal.\u201d<\/p>\n<p>\u201cThe good news is that, by seeking the protection of the bankruptcy court, Genesis will be subject to judicial oversight and be required to provide discovery into the machinations that brought us to this point,\u201d\u00a0Winklevoss added.<\/p>\n<p>Winklevoss added that\u00a0Gemini is preparing to take\u00a0legal action against\u00a0DCG,\u00a0Silbert, and others who he said \u201cshare responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices.\u201d<\/p>\n<p>The Epoch Times has contacted\u00a0Genesis for comment.<\/p>\n<p>Genesis is the latest company to file for bankruptcy after FTX,\u00a0Celsius, BlockFi, and Voyager did so over the past year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Genesis Global, a cryptocurrency lender, filed for bankruptcy Jan. 19, becoming the latest company to file for bankruptcy following the collapse.\u00a0FTX November The lender announced it had filed for\u00a0Chapter 11 bankruptcy protection in a press release, stating that the move was part of \u201cstrategic actions to achieve a global resolution to maximize value for all &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1818910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[7740,5458,7385,12577,5665,7334,15107,15945,6461,3819],"class_list":["post-1818907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bankruptcy","tag-bongino","tag-collapse","tag-cryptocurrency","tag-files","tag-ftx","tag-genesis","tag-lender","tag-months","tag-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1818907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1818907"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1818907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1818910"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1818907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1818907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1818907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}