Crypto Giant Genesis Files For Bankruptcy As Casualties Mount After FTX Collapse

Topline Cryptocurrency lender Genesis filed for bankruptcy late Thursday night, court documents show, the latest major player to fold and another blow to the sector as it

struggles to recover from the collapse of Sam Bankman-Fried’s exchange FTX last year. Key Facts Crypto broker Genesis Global Holdco LLC filed for Chapter 11 bankruptcy

protection in New York federal court late Thursday night, documents show. Genesis Global Capital and Genesis Asia Pacific, two subsidiaries the parent firm said were only

involved in its lending business, also filed for bankruptcy protection. Genesis Global Holdco and Genesis Asia Pacific each reported assets and liabilities in the range of

$100 million and $500 million. Genesis Global Capital reported between $1 billion and $10 billion in assets and liabilities and listed over 100,000 creditors in the “mega”

bankruptcy filing, with the top two unsecured claims alone amounting to nearly $1.3 billion. Genesis said it has more than $150 million in cash on hand that will provide

“ample liquidity” to keep the business operating and “facilitate the restructuring process,” stressing that its derivatives and spot trading, dealer and custody businesses are not

part of the filing and continue to run as normal. Interim chief executive Derar Islim said the bankruptcy and in-court restructuring offered the firm “the most effective

avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders.”