Genesis Global Holdco LLC, the parent company of the renowned cryptocurrency lender Genesis Global Capital, has recently filed for Chapter 11 bankruptcy protection. This move was prompted by the severe impact of two of the most devastating collapses in the cryptocurrency industry in 2022.
The filing, which Genesis Global Holdco LLC made along with its subsidiaries Genesis Asia Pacific Pte. Ltd. and Genesis Global Capital, LLC, involves a trio of voluntary petitions submitted to the bankruptcy court. This action was taken to safeguard the company’s assets and stakeholders while also ensuring a smooth and orderly process for reorganizing its business operations.
It is important to note that Genesis Global Holdco LLC and its subsidiaries fall under the umbrella of Digital Currency Group, a renowned name in the industry that also owns CoinDesk, a leading source of news, analysis, and information for the crypto and blockchain communities.
In its filing for Chapter 11 bankruptcy protection, Genesis Global Capital, the partner firm to Gemini’s now-defunct Earn program, has provided a detailed estimate of its financial position.
The filing reveals that the company estimates that it has more than 100,000 creditors, a staggering number highlighting the scale of its operations and reach in the industry.
According to the filing, the company estimates that it has more than 100,000 creditors, a staggering figure that demonstrates the scope of its operations and industry reach.
This is a significant financial burden for the company, highlighting the impact of the two industry collapses in 2022 and the difficulties that Genesis Global Capital has faced.
Also, Genesis Global Holdco LLC and Genesis Asia Pacific Pte. Ltd., the two other entities that filed for Chapter 11 bankruptcy protection alongside Genesis Global Capital, estimated their assets and liabilities to be in the $100 million to $500 million range, respectively.
According to the bankruptcy filing, Genesis has a significant amount of debt owed to its top 50 creditors. Among the creditors listed in the filing are some of the most recognizable names in the cryptocurrency industry, including crypto exchange Gemini, trading giant Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
The fact that these well-established players in the industry are among Genesis’ top creditors highlights the scale of the company’s operations and reach.
However, trouble started with Genesis after the news of the FTX implosion broke out. The company was forced to stop withdrawals and has struggled to raise fresh funds to settle its debts.
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