Cryptocurrencies even more fragile? A new big name goes bankrupt!

In great difficulty for a few months, the Genesis platform announces filing for bankruptcy.

This is yet another collateral damage produced by the collapse of another cryptocurrency platform: FTX.

FTX drags Genesis down

At the end of last year, we witnessed the collapse of the FTX platform. In total, the various FTX clients are said to have lost no less than $8 billion in funds, with more than a million “ victims ” in the world. The fall of FTX obviously had significant repercussions, especially with the bank Silvergate Capital Corporationdespite the denials of Samuel Bankman-Fried.

Indeed, the former boss of FTX, Samuel Bankman-Fried, swears again and again, to whoever wants to believe him, that he did not defraud anyone. Unfortunately, FTX’s downfall continues to take its toll, the latest being the Genesis platform.

Genesis in the “Land of Confusion”

Indeed, it is through an official press release that Genesis Global Holdcowith its subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific Ptehas confirmed to a New York court its desire to be placed under the protection of Chapter 11 of American law.

In other words, Genesis announces to file for bankruptcy, and will try to restructure. When FTX fell, Genesis froze client withdrawals, with the platform holding around 30% of its funds at FTX. In addition, Genesis is also in conflict with the Gemini platform, founded by the Winklevoss brothers (the same ones who sued Mark Zuckerberg a few years ago for the creation of Facebook).

” Although we have made significant progress in refining our business plans to address liquidity issues caused by recent extraordinary events in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring remains the most effective solution to preserve assets and create the best possible outcome for all Genesis stakeholders said Derar Islim, the group’s acting CEO. The latter also praises the patience of his clients and promises to seek a fair solution.

An additional difficulty therefore for the company Genesis, which had also lent more than 2 billion dollars to the fund Three Arrows Capital. Last summer, the platform was forced to lay off 20% of its staff, and another 30% quite recently.

Source : The Verge