Crypto lender Genesis files for bankruptcy in latest blow to Barry Silbert's DCG empire

Genesis Trading filed for bankruptcy protection after suffering crippling losses from the collapses of FTX and hedge fund Three Arrows Capital. Genesis is a part of Barry

Silbert's Digital Currency Group, which has seen mounting problems in recent months. Some of Genesis' largest clients include Circle, which operates stablecoin USD Coin, and

Gemini, which is backed by the Winklevoss twins. Crypto lender Genesis filed for Chapter 11 bankruptcy protection late Thursday night in Manhattan federal court, the latest

casualty in the industry contagion caused by the collapse of FTX and a crippling blow to a business once at the heart of Barry Silbert's Digital Currency Group. The company

listed over 100,000 creditors in a "mega" bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars, according to bankruptcy

documents. Three separate petitions were filed for Genesis' holding companies. In a statement, the company noted that the companies were only involved in Genesis' crypto

lending business. The company's derivatives and spot trading business will continue unhindered, as will Genesis Global Trading. "We look forward to advancing our dialogue

with DCG and our creditors' advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future,"

Genesis interim CEO Derar Islim said in a statement. The filing follows months of speculation over whether Genesis would enter bankruptcy protection, and just days after the

Securities and Exchange Commission filed suit against Genesis and its onetime partner, Gemini, over the unregistered offering and sale of securities.