Cryptocurrency Companies Fall One by One

Cryptocurrency lender Genesis reportedly filed for bankruptcy protection in the U.S. Federal Court at Manhattan on the evening of January 19th, 2023. The accumulated debt in arrears has reached at least $3.4 billion. Since the bankruptcy of cryptocurrency trading platform FTX, the market effect has impacted the entire industry and Genesis also suspended its customers’ fund redemption requests on November 16 last year. According to documents filed with the court by Genesis, as of November 30th of last year, the company had more than 100,000 creditors, $5.3 billion in assets, and $5.1 billion in debt including intercompany liabilities. While Genesis filed for bankruptcy protection, Gemini, its largest creditor, announced the suspension of redemption, and retail investors would not be able to withdraw their savings which amounted to US$900 million. This may eventually cause the bankruptcy of other trading platforms. After Genesis filed for bankruptcy, one of the Gemini founders, Cameron Winklevoss, tweeted that Genesis’ parent company, Digital Currency Group (DCG), and its CEO, Barry Silbert “continues to refuse to provide creditors with a fair deal” and they do not rule out to an immediate initiation in legal proceedings against Digital Currency Group and related parties.

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