Cryptocurrency exchange Genesis Global Capital could not resist the market pressure and declared bankruptcy on Thursday night.
The information was obtained through official documents indicating that the company was not able to withstand the crypto winter and the collapse of Sam Bankman-Fried’s FTX at the end of last year.
According to the documents, the exchange has filed for bankruptcy protection in a New York federal court.
In the documents, Genesis Global Capital and Genesis Asia Pacific, two affiliates of the exchange said they were only involved in lending business and had also filed for bankruptcy protection.
Genesis Global Holdco and Genesis Asia Pacific reported that they have assets and liabilities between $100 million and $500 million. As each, Genesis Global Capital reports that it has 1 billion assets, 10 billion liabilities, and has more than 100,000 creditors.
For now, Genesis guarantees it has more than $150 million in cash and will provide “ample liquidity” to keep the business afloat and “facilitate the restructuring process,” emphasizing that its derivatives and futures business prospects, distributors and incubators are not part of the process.
Forbes magazine quoted the interim CEO of the stock exchange, Dirar Islam, as saying that the bankruptcy and restructuring ordered by the court provide the company with “the most effective means of preserving assets and achieving the best possible results for all stakeholders in Genesis.”
It should be remembered that yesterday it was announced that Genesis could file for bankruptcy, at a time when the collapse of FTX and a legal dispute with Gemini, founded by two cryptocurrency pioneers Cameron and Tyler Winklevoss, were the main excuse for this situation.
Crypto Winter Claims Another Victim: Exchange Genesis Prepares to Declare Bankruptcy