After weeks of rumors and speculation, cryptocurrency lender Genesis Global Capital has officially filed for Chapter 11 bankruptcy protection from its creditors.
The bankruptcy filing in a Manhattan federal court makes Genesis the latest casualty in the global contagion that has gripped the crypto industry following the $8 billion U.S. collapse of FTX last November.
In its bankruptcy filing, Genesis lists more than 100,000 creditors and liabilities of $11 billion U.S.
However, the bankruptcy only impacts Genesis’ crypto lending business. The company’s derivatives and spot trading unit will continue, as will Genesis Global Trading.
The failure of Genesis’ cryptocurrency lending business comes days after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Genesis and its onetime partner, crypto exchange Gemini, over the unregistered sale of securities.
Genesis listed a $765.9 million U.S. loan payable from Gemini in its bankruptcy filing. Gemini owners Cameron and Tyler Winklevoss continue to publicly fight with Genesis over the loan.
The bankruptcy of Genesis follows other high profile cryptocurrency failures over the last year, including FTX, BlockFi, Celsius and Voyager.
FTX’s collapse last fall roiled the entire crypto market and led customers around the world to seek withdrawals. After the FTX collapse, Genesis had sought an emergency bailout of $1 billion U.S. but found no takers.
Genesis provided loans to cryptocurrency hedge funds and over-the-counter firms, but a series of bad bets damaged the lender and forced it to halt all client withdrawals on November 16, days after cryptocurrency exchange FTX declared bankruptcy.
