Sat. Jan 28th, 2023

• Crypto lender Genesis Global has filed for Chapter 11 bankruptcy protection in New York.
• The firm has estimated liabilities of $1 billion to $10 billion and assets in the same range.
• Genesis has more than $150 million in cash on hand to support its ongoing business operations and facilitate the restructuring process.

Crypto lender Genesis Global has become the latest firm to succumb to the collapse of FTX, filing for Chapter 11 bankruptcy protection in New York. The firm’s filing in the Southern District of New York estimated liabilities in the range of $1 billion to $10 billion and assets in the same range.

In a Jan. 19 press release, Genesis said it had been engaged in discussions with its advisors, creditors, and corporate parent Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward. As a result, the firm commenced a court-supervised restructuring process to further advance these discussions.

The Chapter 11 plan sees Genesis contemplating a “dual track process” pursuing a “sale, capital raise, and/or an equitization transaction” that would enable the business to emerge under new ownership. The derivatives, spot trading, broker-dealer, and custody businesses of Genesis are not part of the Chapter 11 proceedings and will continue operations according to the firm.

Genesis also claims to have more than $150 million in cash on hand that it believes “will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process.” The firm’s ultimate goal is to restructure the company with the hope of emerging “as a stronger, more agile, and better capitalized organization.”

Despite the uncertainty of the situation, Genesis is confident that it can successfully navigate the current financial crisis and come out on the other side as a stronger and more resilient firm. The crypto lender remains committed to serving its customers and partners throughout the restructuring process.

By admin