FTX Collapse Claims Big Victim: Genesis Goes Bankrupt

The crypto lender, a subsidiary of billionaire Barry Silbert's crypto empire, has filed for bankruptcy after weeks of speculation. Another renowned crypto firm is

down.  The fall of Sam Bankman-Fried's crypto empire continues to wreak havoc on the cryptocurrency industry.  Crypto lender Genesis Global Holdco LLC filed for

bankruptcy on January 19, victim of its business dealings with the FTX cryptocurrency exchange.  FTX and its sister company Alameda Research, a hedge fund and trading

platform, were the flagships of Bankman-Fried's empire, which collapsed overnight on November 11 after being unable to meet massive withdrawals of funds from their panicked

clients. Genesis (GGH) and two subsidiaries Genesis Global Capital et Genesis Asia Pacific have filed for Chapter 11 bankruptcy protection in the Southern District of New

York. Genesis Global Capital has indicated that it has assets and liabilities of between $1 billion and $50 billion each time. 100,000 Creditors The company also has more

than 100,000 creditors. The first 50 unsecured claims represent approximately $3.4 billion. Genesis’s other subsidiaries involved in the derivatives and spot trading and

custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations, the company said in a statement. The firm wants to use

the bankruptcy procedure to create a trust. The latter will then be responsible for distributing the assets to the creditors. The plan revolves around selling the assets and

raising capital that would enable the business to emerge under new ownership.