Last week, Genesis Global filed a petition in the bankruptcy court for the Southern District of New York. This mentioned that he would like to be placed under the protection of the bankruptcy law. Following this, the Genesis crypto lender had to provide documents revealing the names of its creditors. Among the latter, two US government agencies were included, but they have since been redacted from the list.
US regulators linked to bankrupt exchange
Digital Currency Group’s Genesis Global added to the list of bankrupt crypto companies last week. In this context, on Monday, the crypto lender filed a court document mentioning the names of its creditors. Among these, there are several US government agencies such as the Internal Revenue Service (IRS) and the Securities and Exchange Commission. There is also the United States Attorney’s Office for the Southern District of New York. The Block reported this information with a post on Twitter on January 24, 2023.
It should be noted that the IRS is the agency of the United States federal government that deals with the collection of contributions. The Internal Revenue Service is responsible for collecting income tax and various other taxes. As for the Securities and Exchange Commission, it is the federal body responsible for regulating the financial markets of the United States.
For one reason or another, several names on this list of Genesis creditors have been removed. In addition, there is a law firm and a non-profit organization in this list. They are Norton Rose Fulbright US LLP and Stellar Development Foundation. The latter is the company that developed the Stellar blockchain.
A conflicting relationship between the SEC and Genesis
Genesis Global Capital LLC is among the companies the SEC has attacked in recent times. Indeed, the regulator accused him on January 12 of having committed embezzlement with Gemini Trust Company LLC.
The two crypto companies would have offered and sold securities without having a prior license. This happened with the Gemini Earn loan program.
Affected by the collapse of Three Arrows Capital and the fall of FTX, Genesis Global Capital LLC filed for bankruptcy. The DCG crypto lender, however, indicated that it would be able to hold on during the restructuring process. Indeed, he claimed to have sufficient liquidity, more than $150 million in cash. This sum should allow it to support its commercial activities throughout the restructuring process.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!