Bankrupt Crypto Lender Genesis Prepares for Bitcoin and Ether Sale
Genesis Files Motion for Court Approval
Genesis Global Trading Inc., a bankrupt crypto lender, has filed a motion requesting the approval of a US Judge to sell over 16 billion worth of Bitcoin (BTC) and Ether (ETH). The sale is part of Genesis's efforts to repay its creditors following its collapse earlier this year.
Suspension of Customer Redemptions
In early November 2022, Genesis Trading, the crypto lending arm of US digital asset broker Genesis Trading, suspended customer redemptions. This suspension was prompted by the sudden failure of crypto exchange FTX. The collapse of FTX, once one of the largest crypto exchanges in the world, sent shockwaves through the crypto market and caused widespread financial losses.
Bankruptcy Filing
On January 19, 2023, Genesis's lending unit filed for Chapter 11 bankruptcy protection in the United States. The filing listed debts of at least 3.4 billion owed to creditors. The sale of Bitcoin and Ether is expected to generate significant funds to help repay these debts.
Genesis's Subsidiary of DCG
Genesis is a subsidiary of Digital Currency Group (DCG), a prominent investment firm in the crypto space. DCG has been actively involved in the development and promotion of cryptocurrencies and blockchain technology. The bankruptcy of Genesis has raised concerns about the potential impact on DCG and the broader crypto market.
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