Popular cryptocurrency broker Genesis is expected to file for bankruptcy within days, insiders have revealed, the media reported. It would make the firm the latest crypto casualty following the spectacular downfall of Sam Bankman-Fried’s FTX, where the company held some of its funds, Daily Mail reported.
According to people familiar with the matter, Genesis is currently in the final stage of its Chapter 11 paperwork as it works toward a deal with creditors, Daily Mail reported.
The company, which is owned by venture capital firm Digital Currency Group, had been considering filing for bankruptcy for some time, as it reportedly owes creditors more than $3 billion.
Among those owed money is Gemini, owned by Cameron and Tyler Winklevoss, which reportedly saw more than $900 million of its customers’ funds evaporate from the exchange after Bankman-Fried’s own Chapter 11 filing in November, Daily Mail reported.
The statuesque twins – perhaps best known for their protracted legal battle with fellow billionaire Mark Zuckerberg made famous in The Social Network – were among many to record losses when FTX fell.
Cameron and his brother’s exchange used Genesis as its main lending partner, leaving the brothers – and millions of their customers – in the red as a result.
Lenders like Genesis, founded by crypto magnate Barry Silbert, suffered steep losses from loans it supplied FTX’s now-defunct trading firm Alameda Research and its hedge fund backer Three Arrows Capital, both of which filed for bankruptcy, Daily Mail reported.
A new report published Wednesday by Bloomberg revealed that as figures such as Winklevosses seek to recover sums lent to Genesis, the New York based-lender has resigned that it cannot raise the funds to pay back its creditors.
In all, Genesis and its owner Digital Currency Group owe creditors a sum reported to be more than $3 billion.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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