Genesis Is Considering Filing For Chapter 11 Bankruptcy Protection
Key Points:Genesis may file for bankruptcy protection after suffering from the collapse of FTX.
The company also had to reduce its workforce by another 30% before making this decision.
After much “buying time”, the company was unable to pay Gemini’s 900-million debt.
DCG’s subsidiary, Genesis Global Trading, was badly hit by the collapse of FTX. It has a stranded sum of up to $175million. According to a Wall Street Journal report, Genesis is considering filing bankruptcy after cutting 30% of its staff yesterday. According to a Genesis spokesperson, the move was made to “preserve customer assets” and “drive the business forward.” The Journal reported that Alameda received millions from Genesis before it collapsed. Genesis lost 145 employees in the aftermath of Alameda’s bankruptcy. Genesis then frozen its client funds in November. Genesis employed 260 people before the August layoffs.
“As we continue facing unprecedented industry challenges, Genesis has made the difficult choice to reduce our global headcount.”
According to Reuters, Genesis is one of many companies that are trying to manage the aftermath of various interconnected parts of the crypto industry going up in flames. Genesis had requested a $1 billion emergency loan before it stopped all withdrawals. Gemini, a $900m creditor, sent Genesis an ultimatum on January 8 asking for a solution. Genesis’ CEO responded to this letter by stating that the company needed more time to deal with the crisis. DISCLAIMER. The information on this website is intended to be general market commentary and not investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comFoxyCoincu NewsTags: # Cryptocurrencies#MarketsbankruptcyBlockchaincryptoDCGFTX CollapseGeminiGenesis Global Capitalgenesis trading