Troubled cryptocurrency brokerage firm Genesis (owned by Digital Currency Group) is preparing to file for bankruptcy as soon as this week, Bloomberg has learned, citing persons close to the matter. The details are unclear as the talks are still ongoing, the sources added.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
The firm apparently failed to resume operations due to the liquidity crisis, which was triggered by the now insolvent hedge fund Three Arrows Capital, which owes it about $1.2 billion.
Genesis reportedly owes creditors over $3 billion and there seems to be no salvation for the firm, whose parent company was considering selling parts of its portfolio valued at $500 million.
As iHodl earlier reported, Gemini's lending arm, Gemini Earn, halted withdrawals, citing issues at Genesis. The exchange wrote in a blog post that Genesis' partial suspension of services had made it impossible to meet requirements of the service-level agreement.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange