Crypto bank Genesis to file for bankruptcy

Crypto lender Genesis Global Capital is reportedly preparing to file for bankruptcy according to a Bloomberg News report from Wednesday.

Anonymous sources with knowledge of the situation said that it could happen as early as this week.

Genesis, its parent company Digital Currency Group (DCG) and creditors are reportedly negotiating but after several proposal have not succeeded in coming to an agreement yet.

A bankruptcy filing has been in the works for weeks after the bank froze all customer withdrawals on 16 November. The events followed the collapse of major crypto exchange FTX.

The liquidity crisis also impacted Genesis’ partnership with Gemini, founded by the Winklevoss twins. The two companies had an agreement to offered a crypto lending product Earn and now they are feuding over Gemini’s claim that Genesis owes it $900 million.

Last week, the US Securities and Exchange Commission charged Gemini and Genesis for unregistered offer and sale of securities to retail investors.

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