Again, another crypto company is going to file for bankruptcy. In recent times, filing for bankruptcy has become customary in the field of cryptography. After the dramatic fall of FTX and Alameda, a lot of crypto companies collapsed. This is the case of Genesis, a crypto company specializing in lending. She never stopped looking for solutions. But in vain ! Result: Genesis will soon file for bankruptcy.
Inevitable filing for bankruptcy after unsuccessful resolution attempts
Like many other crypto companies, Genesis has faced different issues lately. On November 16, 2022, it froze customer redemptions. At the beginning of the year, the interim CEO of Genesis Global Trading made a special request to his clientele. This was to give the crypto company more time to resolve the financial crisis it is currently going through. The leaders thought they were finding a solution by saying “we are convinced that we can come to a solution”.
After many unsuccessful attempts, Genesis is now forced to file for bankruptcy. Even if the news is not yet official, it should not take long. If we trust thearticle published by Bloomberg, the announcement will even take place this week.
Genesis, yet another crypto company victim of the fall of Alameda
A few months later, the number of crypto companies victims of the fall of FTX and Alameda continues to increase. The bankruptcy of Genesis is indeed due to heavy losses suffered because of the loans it granted to Alameda.
Added to this are his recent problems with the SEC. Indeed, this crypto regulator accuses for not registering an offer and for selling securities of crypto assets through the Gemini Earn program.
For many, the downfall of crypto lending firm Genesis comes as no surprise. That being said, this news will further weaken the crypto market that is already going through difficult times. To be continued…
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