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Crypto Firm Genesis is Preparing Bankruptcy

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Crypto Firm Genesis Is Preparing to File for Bankruptcy
Crypto Firm Genesis Is Preparing to File for Bankruptcy

Genesis Global Capital, a loan company affiliated with Digital Currency Group, is preparing to file for bankruptcy.

About Bankruptcy Application

GGC, the crypto company affiliated with Digital Currency Group, has been in secret talks with some of its creditors in recent weeks due to the liquidity crunch it has been experiencing. In an article dated January 18, Bloomberg said that GGC could have to file for bankruptcy if it cannot resolve its liquidity crunch. Representatives of Genesis and Digital Currency Group did not comment on these statements.

GGC and DGC’s financial problems began after the collapse of Three Arrows Capital, a crypto hedge fund. Genesis held some funds in FTX, which went bankrupt last year.

After the Collapse of FTX

With the collapse of FTX, Genesis was forced to suspend withdrawals. Looking at these, we can say that the effects of last year’s FTX incident are still ongoing. GGC was not the only company affected by the problems. Genesis’ troubles also affected Gemini, the cryptocurrency exchange run by Cameron and Tyler Winklevoss, known as the Winklevoss brothers. Previously, GGC and Gemini had established a partnership with the “earn” program. As a result of the problems experienced, the Gemini Earn program was stopped.

If Gemini files for bankruptcy, a new one will be added to the wave of bankruptcies of companies that came with the collapse of FTX.

Reference

www.bloomberg.com

Written by
oguz

The author is a political science and public administration student at Kocaeli University. He is also studying Management Information Systems at Anadolu University. He met Blockchain technology and Cryptocurrencies for the first time in 2019. Interested in cryptocurrencies for over 2 years. In addition he provides E-commerce and social media marketing services.

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