Another cryptocurrency lender, Genesis Global Holdco LLC, and two of its subsidiaries have filed for bankruptcy in a New York court, following in the footsteps of troubled FTX and BlockFi. This action illustrates how the market has been affected by the decline in cryptocurrencies. The Southern District of New York court received voluntary petitions under the bankruptcy law from Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific.
Genesis Global Holdco said that it had $150 million in cash to support the restructuring
However, it also stated that Genesis would continue its client trading activities and that its derivatives and spot trading, broker-dealer, and custody companies were not involved in the bankruptcy process. In its petition, Genesis’ loan division stated that it had assets and liabilities between $1 billion and $10 billion, as well as more than 100,000 creditors.
Genesis Global Holdco said that it had $150 million in cash to support the restructuring and that it is considering pushing for a prospective sale or equitization transaction to pay creditors. The US Securities and Exchange Commission (SEC) accused Genesis of offering securities to investors in violation of the law via the Earn program on January 12.
The company facilitated the sale of digital assets to financial organizations like hedge funds and asset managers
According to its website, Genesis facilitated the sale of digital assets to financial organizations like hedge funds and asset managers. At the end of the third quarter, it had approximately $3 billion in total active loans, a decrease from $11.1 billion a year earlier. After a car crashed into a metal barricade outside the California home of the cryptocurrency trader, Sam Bankman-Fried, the 30-year-old founder of FTX, has been the target of a security threat, according to his attorneys.
After a car crashed into a metal barricade outside the California home of the cryptocurrency trader, Sam Bankman-Fried, the 30-year-old founder of FTX, has been the target of a security threat, according to his attorneys. In a document submitted to a federal court in Manhattan by the billionaire’s attorneys, it was claimed that three guys stepped out of the car and warned a security guard manning his residence, “You won’t be able to keep us out.”
Bankman-Fried told BBC that he would “give anything” to launch a new company
The males, who have not been named, re-boarded the vehicle and sped off. However, the attorneys simply stated that the incident was recent and did not provide a date. They brought up the incident in court in reaction to intense pressure from the media to reveal the identities of the two people who, along with Bankman-parents, Fried’s helped guarantee his bond. From the Bahamas, Bankman-Fried told BBC that he would “give anything” to launch a new company to assist his clients who lost their investments.
“I’m going to be thinking about how we can help the world, and if users haven’t gotten much back, I’m going to be thinking about what I can do for them,” Bankman-Fried told the BBC. “And I think at the very least I have a duty to FTX users to do right by them as best as I can.”
