Digital Currency Group’s Genesis Global, one of the largest digital currency trading platforms in the world, has filed for bankruptcy protection in a New York court.
Bankruptcy Filing
The news of Genesis Global’s bankruptcy filing was a more anticipated outcome, as there had been a liquidity crisis in the firm.
Many industry experts have speculated it was only a matter of time before the firm went ahead with the bankruptcy proceedings.
In recent months, the company has been hit hard by a number of factors, including a decline in trading volume and a drop in the value of digital currencies, and suffered a colossal loss due to the FTX crash in October.
The SEC has also been involved in the company’s case, with alleged accusations of the company operating and trading unregistered securities through the Gemini platform in their Earn Trust Offerings.
According to the bankruptcy filing, Genesis Global is currently facing $200 million in debt, and has assets of only $50 million.
Gemini co-founder, Cameron Winklevoss previously called out the firm for owing a debt of almost $500 million and refusing to pay back.
Also read:What Next?
The company has stated that it plans to use the bankruptcy process to restructure the firm and emerge stronger after this phase passes.
The company’s CEO stated in a press release, that the firm is taking this bold step to protect the customer alongside the firm and to ensure that the company’s clients are taken care of in the best possible way.
The CEO believes that this is the best strategy moving forward for Genesis Global, and his firm is very committed to making this whole process work and benefit both the firm, customers and clients.
The bankruptcy filing has raised concerns among the company’s customers and shareholders, many of whom have been affected by this tragic crypto winter and market catastrophe.
However, the company has stated that its operations will continue as before amidst the bankruptcy process, and it will work to ensure customers and shareholders are not negatively affected by this procedure.
Despite the market downside and firm collapses, many in the industry remain bullish about the future of digital currencies, and believe that they will continue to grow and evolve in the coming years.
However, the bankruptcy of Genesis Global serves as a reminder of the risks and volatility associated with this developing space.
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