Cryptocurrency exchange Genesis announced that it filed for bankruptcy on Thursday.
As mentioned:
“The court-ordered restructuring presents the most efficient path to preserving assets and achieving the best possible results for all stakeholders in Genesis,” said Genesis Acting CEO Dirar Islam.
The company, a subsidiary of Digital Currency Group (DCG), claims to have more than $150 million in cash, which it describes as “ample liquidity” to fund operations during the restructuring process.
A Genesis spokesperson clarified that Genesis Global Trading and other affiliates involved in the derivatives, spot trading and custody business are not listed and are still operating.
The filings follow widespread reports of an imminent bankruptcy for Genesis and a week after the Securities and Exchange Commission (SEC) accused the company and cryptocurrency exchange Gemini of violating the Securities Act.
Genesis launched the first over-the-counter Bitcoin trading desk in 2013, becoming one of the largest players in the industry.
Recently, however, headlines related to the company have involved its very public battle with cryptocurrency exchange Gemini.
Gemini and Genesis have teamed up on the Gemini Earn program, and Gemini says Gemini has withheld more than $900 million in customer funds.
In response to the announcement, Gemini founder and president Cameron Winklevoss wrote on Twitter that “we will use every tool available in Bankruptcy Court to maximize recovery for Earn users and any other parties within the jurisdiction of Bankruptcy Court.”
“Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing suit against Barry and DCG soon,” Winklevoss wrote.
Crucially, the Genesis bankruptcy decision is not isolating [CEO da DCG] Barry [Silbert]And DCG and any other wrongdoers are held responsible.”