Subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific Pte also filed for bankruptcy
Confirming several days of rumours, Genesis Global Holdco – one of the top creditors in the cryptocurrency space – has finally filed for Chapter 11 of the US Bankruptcy Code for protection from creditors. Subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific Pte also filed for bankruptcy.
The company said in its filing that its assets and liabilities are between $1 billion and $10 billion and it has more than 100,000 creditors, with the top 50 unsecured claims totaling about $3.4 billion.
As Genesis states in its bankruptcy filing, its plan is to try to sell assets or raise money. If it fails, the company will go to creditors.
Genesis plans to use about $150 million in cash it has to continue funding its operations while it is in protected status. Chapter 11 allows a company to continue operating while it tries to find ways to repay its creditors.
“While we have made significant progress in finalizing our business plans to address liquidity issues created by the recent severe challenges in the industry, including the default of Three Arrows Capital and the bankruptcy of FTX, a restructuring through the court process is the most effective way to preserve our assets and achieve the best possible outcome for all concerned measures,” Genesis interim CEO Derar Islam said in a statement on the company’s website.
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