Genesis Files for Chapter 11 Bankruptcy
Genesis Global Trading filed for Chapter 11 bankruptcy in the Southern District of New York (SDNY) court late on January 19th.
After a series of attempts to keep the company afloat, Genesis Global Holdco and two of its subsidiaries, Genesis Global Capital and Genesis Asia Pacific, filed voluntary petitions for bankruptcy protection under the SDNY Bankruptcy Code.
Reportedly, the company’s other subsidiaries involved in the derivatives and spot trading and custody businesses, as well as Genesis Global Trading, are not included in the filing and continue to transact business with customers.
Genesis also plans to consider a two-way sale process, a capital raising, or an equitization transaction that would potentially allow the business to have new owners.
Derar Islim, interim CEO of Genesis said:
“While we have made significant progress in refining our business plans to address the liquidity issues caused by recent extraordinary challenges in our industry, including the Three Arrows Capital bankruptcy and the FTX bankruptcy, a judicial restructuring represents the most effective way for us to preserve assets and create the best possible outcome for all Genesis stakeholders.”
Islim added:
“We deeply value our clients’ patience and partnership as we work to find a fair resolution.”
In mid-November 2022, Genesis halted withdrawals and new lending, and later that month the company warned of a possible bankruptcy filing as lenders seek alternative options to avert it.
The company also said it has more than $150 million in cash, which it plans to use as liquidity to support its ongoing operations and facilitate the restructuring process.
The restructuring process will be led by an independent ad hoc committee of the company’s board of directors, and Genesis says the process is intended to ensure an optimal outcome for Genesis customers and Gemini Earn users.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
