Media: Crypto lender Genesis is preparing to declare itself bankrupt

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Bloomberg, citing sources close to Genesis Global Capital, reports that the company’s next step after the termination of payments to customers will be filing a bankruptcy petition with the court.

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It is expected that the application Genesis Form 11 “Protection against claims of creditors during the restructuring” will arrive in the judiciary before the end of the week.

Earlier, the cryptocurrency lending arm of Digital Currency Group (DCG) informed the crypto community that it was in talks with several groups of lenders to seek additional funding sources due to a progressive liquidity crisis.

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DCG’s legal adviser, Kirkland & Ellis and Proskauer Rose, said the parties had been in talks for several weeks but were unable to reach an agreement.

The Genesis bankruptcy proceedings could significantly complicate the position of the Gemini cryptocurrency exchange in a dispute over debt collection from a crypto creditor. Gemini accuses Genesis of about $1 billion in debt over a crypto lending product called Earn.

Source: Bits

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