Assessment: Fraud and hundreds of billions in customer losses are paving the way for Central Bank Digital Currencies …
Genesis Global Holdco officially filed for bankruptcy several weeks after fellow cryptocurrency exchange FTX suddenly imploded.
The company and two subsidiaries, Genesis Global Capital and Genesis Asia Pacific, submitted bankruptcy petitions with the United States Bankruptcy Court for the Southern District of New York. Genesis Global Trading and other subsidiaries will continue operations.
“and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.” Rev. 13:17
“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,” Genesis Interim CEO Derar Islim remarked in a press release.
The company is considering a restructuring process that may involve a capital raise or another transaction that could permit the business to emerge under new management. “We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders,” added Paul Aronzon, an independent director at Genesis.
The company is owned by Digital Currency Group, which also holds investments in popular exchange platform Coinbase and several dozen other cryptocurrency companies. Genesis had ceased withdrawals and new loan originations two months ago; company leadership was reportedly in talks to receive an investment from cryptocurrency platform Binance.
The bankruptcy comes after reports revealed that former FTX CEO Sam Bankman-Fried had commingled funds between the exchange platform and sister trading company Alameda Research.
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