Crypto lender Genesis files for Chapter 11 bankruptcy

Jan 19, 2023, 5:55 PM | Updated: Jan 20, 2023, 7:58 am

Crypto lending company Genesis is seeking Chapter 11 bankruptcy protection as faltering prices and the downfall of FTX continue to rattle the industry.

Genesis Global Holdco LLC and two of its lending business subsidiaries, Genesis Global Capital LLC and Genesis Asia Pacific Pte. Ltd., filed for bankruptcy protection in the Southern District of New York. Genesis said that its other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

Genesis said that it has more than $150 million in cash on hand, providing ample liquidity to support its ongoing business operations and facilitate its restructuring.

Last week the Securities and Exchange Commission went after Genesis Global Capital and the crypto exchange Gemini, alleging that they were selling unregistered securities through a popular program that was supposed to give high interest payments on crypto deposits.

The SEC’s lawsuit is part of a broader cryptocurrency crackdown by multiple U.S. government agencies after crypto prices fell sharply last year, exposing mostly retail investors to billions of dollars in losses.

Genesis’ restructuring plan includes creating a trust that will distribute assets to creditors.

The plan considers a dual-track process and is looking at a possible sale, capital raise or other transaction that would allow the business to emerge under new ownership. The New York-based company will start a marketing and sale process to monetize Genesis Global Holdco’s assets or otherwise raise capital, using the transaction proceeds to pay creditors. If the process doesn’t result in a sale or capital raise, creditors will receive ownership interests in a reorganized Genesis Global Holdco.

“”While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” interim CEO Derar Islim, who took on the role in August, said in a statement.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Zoubin Ghahramani, vice president of research at Google, speaks at the Google AI@ event on W...
Associated Press

Google has the next move as Microsoft embraces OpenAI buzz

Before the artificial intelligence tool ChatGPT was unleashed into the world, the novelist Robin Sloan was testing a similar AI writing assistant built by researchers at Google.
13 hours ago
budgets...
Associated Press

Group’s lawsuit seeks to void Washington transportation law

A conservative legal advocacy organization is suing to halt the nearly $17 billion transportation funding bill passed by the Washington Legislature and signed by Gov. Jay Inslee last year.
13 hours ago
Associated Press

S. Carolina bill shielding death penalty drugmakers advances

COLUMBIA, S.C. (AP) — Republicans’ quest to resume executions in South Carolina overcame another hurdle Thursday. The state Senate Corrections and Penology Committee approved a bill that would shield the identities of the companies that dispense the drug cocktail used to execute people on death row. The full Senate must now take up the latest […]
2 days ago
Associated Press

US to send Ukraine longer-range bombs in latest turnaround

WASHINGTON (AP) — After months of agonizing, the U.S has agreed to send longer-range bombs to Ukraine as it prepares to launch a spring offensive to retake territory Russia captured last year, U.S. officials said Thursday, confirming that the new weapons will have roughly double the range of any other offensive weapon provided by America. […]
2 days ago
Associated Press

Dance hall 911 caller: ‘He might start shooting again’

LOS ANGELES (AP) — A gunman had fired his first deadly shots outside a dance hall when Monterey Park police got a call for help from a man trying to make sense of what happened to his partner sitting in the car next to him. “Is your girlfriend awake?” the dispatcher asked. “I’m not sure,” […]
2 days ago
Cricket Hall speaks against a bill that would ban gender-affirming surgery and hormone therapy for ...
Associated Press

Crowds decry gender-affirming treatment ban in West Virginia

CHARLESTON, W.Va. (AP) — Crowds at the West Virginia state Capitol pleaded with lawmakers Thursday to show as much compassion for saving the lives of transgender children as they showed for unborn fetuses when they voted to ban abortion just months ago. Over and over, dozens of doctors, parents and LGBTQ people told the Republican […]
2 days ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Crypto lender Genesis files for Chapter 11 bankruptcy