Genesis Global of Digital Currency Group files for bankruptcy protection

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Last Updated on January 20, 2023 by Bitfinsider

Genesis Global Holdco filed for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York late Thursday.

The announcement comes after the company failed to acquire funds for its ailing lending segment and laid off 30% of its employees in a new wave of layoffs in early January.

On November 16, the company froze withdrawals and new loan originations from its lending affiliate. Previously, Genesis Global Trading stated that its derivatives firm had $175 million stranded in FTX following the crypto exchange’s bankruptcy.

Genesis informed consumers on January 4 that it was still working to find a solution for the struggling borrowing and lending operation, but that it required more time. At the time, the company stated that its derivatives and spot trading businesses were fully operating.

The Securities and Exchange Commission charged Gemini and Genesis on January 12 with the unregistered marketing and sale of securities through the Gemini Earn lending program. According to the government, the initiative was available to retail investors, some of whom were based in the United States.

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