Genesis Global Capital, the cryptocurrency lending unit of Digital Currency Group has filed for bankruptcy amid liquidity concerns. The fall of the Three Arrows Capital as well as the recent FTX bankruptcy are some of the major factors that have led to Genesis’s cash shortages. In November, Genesis had reportedly suspended withdrawals as it had lost its funds that were previously held with FTX. As pressure mounts, Genesis’s creditors as well as representatives from DCG have been unable to come to a settlement.
Genesis Global Capital launched its first “over-the-counter” bitcoin trading desk in 2013. Since then, the company has grown considerably with about over $53 billion in derivatives traded in 2021. The uncertainty in the crypto market and the fall of FTX have dramatically affected Genesis and its responsibilities to its creditors.
The following sources were used:
- 2021 Market Activity, Genesis Global Trading Inc.
- Crypto Firm Genesis is Preparing to File for Bankruptcy, Bloomberg