Genesis Global Capital is set to proceed with bankruptcy filings as early as this week, Bloomberg News reported on Wednesday.
Citing people with knowledge of the matter, the report stated that the cryptocurrency trading platform’s collapse came after it froze customer redemptions on 16 November.
The news comes just after FTX’s collapse and subsequent bankruptcy proceedings on 11 November. Numerous crypto firms have followed, including crypto lending company BlockFi and the largest publicly traded cryptocurrency mining firm in the United States, Core Scientific Inc.
Bloomberg added Genesis and parent firm Digital Currency Group have failed to agree on a proposal. Creditors involved in the case include Kirkland & Ellis and Proskauer Rose have joined advising groups.
Gemini-Genesis Partnership
The cryptocurrency enterprise is also deadlocked with Gemini founders Cameron and Tyler Winklevoss. The latter accused Genesis of owing over $900 million USD.
The partnership led to the launch of crypt lending product Earn, which faced US Securities and Exchange Commission (SEC) charges of selling illegal securities to customers.
Recently, fintech firm Curve proposed to buy BlockFi following FTX’s collapse in mid-November. Curve aims to buy out BlockFi’s massive 87,000 customer base after the latter suspended access to credit cards.
