The cryptocurrency lending company is owned by Genesis. Filed for Chapter 11 bankruptcy in New York. The entities that specifically filed include Genesis Global Holdco, LLC, Genesis Global Capital, LLC, and Genesis Asia Pacific Pte. Limited Company’s other subsidiaries that are not involved in derivatives, spot trading, and custody as well as Genesis Global Trading continue to offer services to customers.
With the company insolvent, this means that “redemption” and “originating new debt” will remain suspended but clients will be able to make claims to recover their assets through the bankruptcy process. I Its frequently asked questionsGenesis said it will create a traditional claims process for its lenders while lending clients will receive information from the company’s claims and notices agent Kroll, which processes claims.
The company said it would move forward with the Chapter 11 process as quickly as possible, but did not provide a definitive outline. Genesis said the move will allow lenders to “become owners in the business, enabling our lending business to emerge under new ownership.”
Genesis is a subsidiary of Digital Currency Group, which also owns the largest digital currency asset manager, Grayscale, and crypto news website CoinDesk, among other crypto companies. In a statement on Twitter, DCG said it will continue to operate as normal and so will its other subsidiaries, including Genesis’ spot and derivatives trading businesses, as mentioned earlier.
DCG said it owes Genesis Capital $526 million, due in May, and $1.1 billion under a promissory note due in June 2032. DCG said it “intends” to meet these obligations during Genesis Capital’s restructuring process.
