Genesis Global Capital, a major cryptocurrency lender, is reportedly planning to file for bankruptcy.
According to Bloomberg, the company could file for bankruptcy as soon as this week. The report notes that parent company Digital Currency Group (DCG) has been in negotiations with various creditor groups who have been advised by Kirkland & Ellis and Proskauer Rose. Several proposals are said to have been exchanged but the parties have failed to come to any agreement.
The news comes after weeks of speculation after the company froze customer redemptions in the wake of crypto exchange FTX’s crash in November.
While the news has not been confirmed by Genesis or DCG, DCG told shareholders on Wednesday that it is suspending quarterly dividends in an effort to conserve cash.
Genesis could become the latest casualty following the spectacular collapse of FTX in November. Crypto lender BlockFi and crypto mining company Core Scientific Inc have both filed for bankruptcy since November.
Elsewhere, Genesis is currently in a dispute with the Cameron and Tyler Winklevoss-founded Gemini. Gemini says Genesis owes it $900 million in connection with a deal the pair struck over Gemini’s crypto lending product Earn.
Both companies last week were charged by the U.S. Securities and Exchange Commission with illegally selling securities to investors through their crypto lending programme.
Latest News
-
Sabadell board urges rejection of BBVA offer as major shareholder backs deal
-
OpenAI and Stripe bring direct purchasing to ChatGPT
-
Visa launches new hub to boost AI in commercial payments
-
Lloyd’s partners with Ireland’s Department of Finance for InsurTech innovation
-
JPMorgan fraud case sees Frank founder Charlie Javice jailed for seven years
-
Moneybox scales homebuyer offering with First Mortgage partnership
Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.
Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.
Beyond compliance: Building unshakeable operational resilience in financial services
In today's rapidly evolving financial landscape, operational resilience has become a critical focus for institutions worldwide. As regulatory requirements grow more complex and cyber threats, particularly ransomware, become increasingly sophisticated, financial services providers must adapt and strengthen their defences. The intersection of compliance, technology, and security presents both challenges and opportunities.
Unleashing generative AI: A force multiplier for financial crime teams
This FStech webinar, sponsored by NICE Actimize sees industry experts examine the revolutionary impact of generative AI on financial crime operations, and provides actionable insights to enhance your compliance strategies.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories