Genesis cryptocurrency bank filed on Thursday (19) in a request for judicial protection against creditors, joining the list of digital currencies companies that collapsed and that has names like FTX and BlockFi.
Genesis Global Capital, one of the largest cryptocurrency banks, froze customer withdrawals on Nov. 16 after FTX shocked financial markets with a bankruptcy filing, fueling speculation that other companies in the sector could implode. The bank is controlled by venture capital firm Digital Currency Group (DCG).
Genesis’ lending unit declared assets and liabilities of between $1 billion and $10 billion and estimated it had more than 100,000 creditors, according to the bankruptcy filing.
Genesis Global Holdco, parent company of Genesis Global Capital, also filed for creditor protection, along with Genesis Asia Pacific.
Genesis acted as a digital asset broker for financial institutions such as hedge funds and asset managers and had nearly $3 billion in total outstanding loans in the third quarter, up from $11.1 billion a year earlier.
Last year, Genesis provided $130.6 billion in cryptocurrency loans and traded $116.5 billion in assets, according to its website.
The bank’s two biggest financing clients were Three Arrows Capital, a Singapore-based hedge fund, and Alameda Research, a trading company with close ties to FTX, a source told Reuters. Both are in judicial recovery.
Source: CNN Brasil
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