After suffering losses from two of the greatest sector crashes of 2022, Genesis Global Holdco LLC, the holding company of beleaguered cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York.

Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC submitted voluntary applications to the United States Bankruptcy Court for the Southern District of New York. The same company that controls CoinDesk, Digital Currency Group, encompasses all three. Genesis has proposed cooperative case administration.

The partner company to Gemini's now-defunct Earn program, Genesis Global Capital, projected more than 100,000 creditors and between $1 billion and $10 billion in liabilities as well as assets in its filing. The assets and liabilities of the other two companies were believed to be between $100 million and $500 million, respectively.

According to the bankruptcy petition released late Thursday, Genesis owes more than $3.5 billion to its top 50 creditors, including cryptocurrency exchange Gemini, trading behemoth Cumberland, Mirana, MoonAlpha Finance, and VanEck's New Finance Income Fund.

These businesses make up Genesis' crypto financing division, which was upended by the collapses of hedge fund Three Arrows Capital and cryptocurrency exchange FTX last year. According to a press release, Genesis' other companies that are active in the derivatives, spot trading, and custody sectors, as well as Genesis Global Trading, were not included in the filing and still conduct client trading.

Fern Curtina
Fern Curtina
Fern had his eye on the Crypto-sphere since 2017. He takes interest in disruptive technologies, black swan projects, and fundamental current events relevant to the Crypto-space.
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