Genesis declared bankruptcy, what's next in 2023? 2022 Era of crypto bankruptcies

2022 was the worst year for crypto after the Luna meltdown. Every company that had exposure to Luna stablecoin went bankrupt, and in November, famous companies went bankrupt, which caused DCG’s parent company, Genesis Global Trading, to file for Chapter 11 bankruptcy protection.

Genesis Bankruptcy

Back in November 2022, Genesis was in trouble immediately after FTX collapsed. They had $175 million stuck on FTX and that Company was looking for a $1 billion liquidity injection to keep the company afloat.

Genesis also made large loans to Three Arrows Capital, which is now bankrupt. They loaned $2.3 billion to 3AC despite warnings about its liquidity. Ultimately, the loss was $1.2 billion when the fund collapsed last year.

Today, Genesis Global filed for Chapter 11 bankruptcy protection, owing more than $3.5 billion to its more than 100,000 creditors. Gemini Crypto Exchange is the largest creditor, as expected, with an unsecured claim of $765.9 million.

The firm published a list of its top 50 creditors, which include such names as Gemini, Cumberland, Mirana, MoonAlpha Finance, and others. As per the document, Genesis Global owes over $3.5 billion to the creditors on that list.

source: Genesis Bankruptcy Protection Filing

you can also check this file from the below tweet.https://twitter.com/SimonDixonTwitt/status/1616389082502008832

In November Genesis Global Capital was forced to suspend customer withdrawals, which hurt customers of a yield product offered by the Gemini crypto exchange.

Gemini Crypto Exchange

Gemini Crypto Exchange is the largest creditor that initially responded to the news on Twitter, Writing a thread that “we have been working to negotiate an acceptable solution with Barry Silbert and DCG” but they “continue to refuse to offer creditors a fair deal.” he added

In this thread, Winklevoss threatened to sue DCG CEO Barry Silbert over the repayment of the loan. 

“Genesis is in negotiations with creditors represented by law firms Kirkland & Ellis and Proskauer Rose” source CNBC

On January 12, the Securities and Exchange Commission charged Genesis and Gemini with allegedly selling unregistered securities in connection with a high-yield product offered to depositors. 

This Below twitter thread read this is totally playing the customer fund both Gemini and Genesis

2022 to 2023 Crypto Bankrupt Companies

 

  1. Three Arrows Capital
  2. Celsius Network
  3. Terraform Labs
  4. Voyager Digital
  5. Core Scientific
  6. Babel Finance
  7. Hodlnaut
  8. Genesis
  9. BlockFi
  10. Zipmex
  11. FTX

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