• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

Insider News: Crypto Lending Firm Genesis Is Planning to File for Bankruptcy

Jan 19, 2023

Insider News: Crypto Lending Firm Genesis Is Planning to File for Bankruptcy

This week may mark the beginning of Genesis Global Capital's bankruptcy proceedings, according to sources with knowledge of the situation.

A Digital Currency Group's division that focuses on crypto services lending is said to be in confidential negotiations with various creditor groups in order to address a liquidity crunch. According to Bloomberg, the group has expressed concern that it may need to file for bankruptcy if it does not raise cash soon.

Representatives from Genesis and DCG have not yet commented on the reports. Sources close to the negotiations have confirmed that the talks are in progress, although any plans may undergo changes.

After the collapse of Three Arrows Capital, difficulties began to arise at DCG. As soon as FTX, a digital asset exchange that Genesis held funds on, filed for bankruptcy, withdrawals from Genesis were suspended.

Among the companies affected by the failures was Gemini Trust, owned by Cameron and Tyler Winklevoss. Gemini Earn, which lets users earn yields by making loans through Genesis, also ceased withdrawals.

Genesis and DCG have been in negotiations for a potential deal with creditor groups, but so far, no compromise has been reached. Sources report that creditors are counseled by Kirkland & Ellis and Proskauer Rose.

A source close to the negotiations says DCG is preparing plans of reorganization and has made offers to creditors, many of whom wish to receive a reimbursement in the form of a combination of cash and equity from the company.

As disclosed in Jan. 17th letter to shareholders published by Bloomberg, the company stated that it would stop paying dividends every quarter in order to conserve cash.

CoinDesk, a cryptocurrency news website owned by DCG, revealed on Wednesday to Bloomberg that it has appointed Lazard as its consultant in order to examine possible solutions, such as the sale or a split of the company.

In the wake of the crash of FTX a couple of months ago, several cryptocurrency lenders and mining companies have been hovering on edge, including BlockFi and Core Scientific, which turned bankrupt soon after.

Last week, the Securities and Exchange Commission (SEC) disclosed that it had filed charges against Genesis and Gemini for selling securities in violation of the law through their cryptocurrency lending services.

Genesis Capital is also in a heated dispute with Gemini over the cryptocurrency lending product 'Earn' which it offered to clients in collaboration with Gemini. According to Gemini, now Genesis owes $900 million to the company in relation to the product.

Subscribe Our Newsletter

3 Emerging Markets That Are Better Choices Than China
3 Emerging Markets That Are Better Choices Than China

Compared to developed markets, emerging markets provide superior bargains. Brazil, Indonesia, and India are better investments than most due to their attractive assets and rapid development.

Stocks
Bitcoin Rebounds, But Don’t Be Fooled
Bitcoin Rebounds, But Don’t Be Fooled

Analysts anticipate further volatility this week and cautiously examine cryptocurrencies below significant technical levels.

Crypto
Oliver

5 Essential Steps to Starting Your Own Forex Brokerage
An excellent way to get into online trading is to launch a forex broker. But, like with any company, there are a few things to think about before jumping in. This article will show you how to become an FX broker and discuss in detail five essential steps to starting your own forex business.

discover
What is a Liquidity Provider Fee?

Liquidity Provider

What is a Liquidity Provider Fee?

Let's find out how do FX Liquidity Providers keep markets moving, what are Liquidity Provider fees and ways to charge them.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Tamta

    Guide to Craiyon: How To Use a New DALL-E Mini

    https://liquidity-provider.com/app/uploads/2023/06/cover-5-800x540.jpg

    Tamta

    Credit Cards vs. Debit Cards

    https://liquidity-provider.com/app/uploads/2023/06/cover-800x540.jpg

    Tamta

    Investing In Private Equity: What Should You Know?

    https://liquidity-provider.com/app/uploads/2023/05/cover-7-800x540.jpg

    Tamta

    What is Data Analytics? Techniques, Tools, Methodology, and More

    https://liquidity-provider.com/app/uploads/2023/05/cover-6-800x540.jpg

    Tamta

    Bitcoin Halving is Coming: What Does it Mean for the Crypto Market?

    https://liquidity-provider.com/app/uploads/2023/05/cover-4-800x540.jpg

    Tamta

    Crypto Token Supply From A to Z

    https://liquidity-provider.com/app/uploads/2023/05/cover-3-800x540.jpg

    Tamta

    What Is ChatGPT, And How Can You Use It?

    https://liquidity-provider.com/app/uploads/2023/05/cover-2-800x540.jpg

    Anton

    Trading on Autopilot: The Rise of Crypto Trading Bots

    https://liquidity-provider.com/app/uploads/2023/05/cover-1-800x540.jpg

    Tamta

    Crypto Investing vs. Crypto Trading: What’s The Difference?

    https://liquidity-provider.com/app/uploads/2023/04/cover-5-800x540.jpg

    Tamta

    Understanding Indexed Universal Life Insurance (IUL)

    https://liquidity-provider.com/app/uploads/2023/04/cover-4-800x540.jpg

    Tamta

    Best Investment Strategies For Beginners

    https://liquidity-provider.com/app/uploads/2023/04/image1-800x540.jpg

    Tamta

    Understanding Perpetual Futures: How Do They Work?

    https://liquidity-provider.com/app/uploads/2023/04/cover-3-800x540.jpg

    Tamta

    What Is A Bitcoin Stock-To-Flow Model? Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/04/cover-2-800x540.jpg

    Tamta

    Best Decentralized Crypto Exchanges In 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-1-800x540.jpg

    Tatma

    Best High-Yield Savings Accounts For March 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-800x540.jpg

    Tamta

    Crypto Trading For Beginners

    https://liquidity-provider.com/app/uploads/2023/03/cover-8-800x540.jpg

    Tamta

    How To Make Money With Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-7-800x540.jpg

    Tamta

    What Is A Candlestick Chart?

    https://liquidity-provider.com/app/uploads/2023/03/cover-6-800x540.jpg

    Constantine

    White Label Forex Software — Ultimate Guide on How to Choose The Best Industry Solution

    https://liquidity-provider.com/app/uploads/2023/03/cover-3-300x203.jpg

    Tamta

    Forex Trading: A Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/03/cover-2-300x203.jpg

    Tamta

    How to Create a Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-1-1-300x203.jpg

    Tamta

    Top Ten Richest People In The World, 2023

    https://liquidity-provider.com/app/uploads/2023/03/cover-4-1-300x203.jpg

    Constantine

    What’s at Stake? Here’s How to Avoid Scam Tokens

    https://liquidity-provider.com/app/uploads/2023/03/cover-5-300x203.jpg

    Constantine

    Investing in Currencies That Are More Valuable Than the American Dollar

    https://liquidity-provider.com/app/uploads/2023/02/cover-2-300x203.jpg
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy