Deepti Sri · · 1 min readGenesis crypto-lending units file for bankruptcy protection
Genesis Global Holdco, the parent company of troubled crypto lender Genesis Global Capital, has filed for Chapter 11 bankruptcy protection in the Southern District of a New York court.
Image credit: Timmy Loen
The filing includes the parent company and two of its lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific. However, Genesis Global Trading, a unit of Digital Currency Group (DCG), is not included in the filing and continues to offer client trading operations.
Genesis Global Holdco has over US$150 million in cash, which it plans to use to support its ongoing operations and restructuring process.
The news comes amid the collapse of crypto exchange FTX, in which Genesis’ derivatives-trading arm had a roughly US$175 million exposure. However, this exposure to FTX has had no impact on Genesis’ ability to serve its clients, the firm said.
Genesis plans to consider a “dual track process” for the sale, capital raise, or equitization transaction that would potentially allow the business to “emerge under new ownership.”
Despite the bankruptcy filing, Genesis Global Capital expects that through the restructuring process, there will be money left over to pay unsecured creditors.
See also: A who’s who of projects facing frostbite in the crypto winter (Updated)
Editing by Miguel Cordon and Arpit Nayak
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