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2023-01-21 Economy
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Crypto lender Genesis files for bankruptcy in latest blow to Barry Silbert's DCG empire
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 [CNBC] Crypto lender Genesis filed for Chapter 11 bankruptcy protection late Thursday night in Manhattan federal court, the latest casualty in the industry contagion caused by the collapse of FTX and a crippling blow to a business once at the heart of Barry Silbert's Digital Currency Group.
The company listed over 100,000 creditors in a "mega" bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars, according to bankruptcy documents.
Three separate petitions were filed for Genesis' holding companies. In a statement, the company noted that the companies were only involved in Genesis' crypto lending business. The company's derivatives and spot trading business will continue unhindered, as will Genesis Global Trading.
"We look forward to advancing our dialogue with DCG and our creditors' advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future," Genesis interim CEO Derar Islim said in a statement.
The filing follows months of speculation over whether Genesis would enter bankruptcy protection, and just days after the Securities and Exchange Commission filed suit against Genesis and its onetime partner, Gemini, over the unregistered offering and sale of securities.
Genesis listed a $765.9 million loan payable from Gemini in Thursday's bankruptcy filing. Other sizeable claims included a $78 million loan payable from Donut, a high-yield, decentralized platform, and a VanEck fund, with a $53.1 million loan payable.
Gemini co-founder Cameron Winklevoss initially responded to the news on Twitter, writing that Silbert and DCG "continue to refuse to offer creditors a fair deal."
"We have been preparing to take direct legal action against Barry, DCG, and others," he continued. 
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Posted by Fred 2023-01-21 00:00||
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