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HomeLatest NewsThe crisis of the criptomonedas drags to Genesis that declares bankruptcy

The crisis of the criptomonedas drags to Genesis that declares bankruptcy

Date: June 9, 2023 Time: 14:09:12

Genesis Global Holdco, a firm dedicated to the negotiation and provision of cryptographic assets, has been forced to declare the bankruptcy of the main company along with two of its subsidiaries: Genesis Global Capital and Genesis Asia Pacific. In this way, the company has filed a voluntary application to avail itself of the protection of Chapter 11 of the US Bankruptcy Code.

This crisis makes Genesis the latest victim of the ‘crypto winter’ that is ravaging the sector after the default of the Three Arrows fund and the collapse of the FTX platform at the end of last year. In the documentation registered with the Bankruptcy Court of the Southern District of New York, the firm blocked that its assets and liabilities range between 1,000 and 10,000 million dollars (925 and 9,248 million euros), while it has more than 100,000 acres

Genesis has reported that it has more than 150 million dollars (139 million euros) in cash, which provides ample liquidity to support its ongoing business operations and facilitate the restructuring process. Likewise, the firm emphasizes that the subsidiaries involved in the custody and spot trading and derivatives businesses and Genesis Global Trading are not included in the request and specifies their commercial operations.

Conversations with creditors

Separately, it has also been reported that Genesis and its advisers have entered into discussions with the advisers of its creditors and corporate parent Digital Currency Group (DCG) to assess the most effective path to preserve assets and move the business forward.

Thus, upon application, Genesis hopes to begin a court-supervised redevelopment process to further advance these negotiations and arrive at “a holistic solution for its lending business” that, if achieved, would provide an optimal outcome for the Genesis customers and Gemini Earn users.

In this sense and as part of its presentation, Genesis has proposed a roadmap that establishes a framework for the global resolution of all claims through the creation of a trust that can distribute the assets among creditors. The plan calls for a two-way process in pursuit of a sale transaction or a capital increase that would allow the business to emerge under new ownership. In the meantime, the company wants to start a process to monetize GGH’s assets or otherwise raise capital, using the transaction proceeds to pay creditors fairly and equitably.

“In the face of liquidity problems caused by recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, a judicial restructuring presents the most effective avenue to preserve assets and create the best possible outcome for Genesis stakeholders,” said Derar Islim, interim CEO of Genesis.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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