Crypto giant files for bankruptcy after crippling, losses, and wake of the FTX collapse
Crypto giant files for bankruptcy after crippling, losses, and wake of the FTX collapseDescription
Crypto giant files for bankruptcy after crippling, losses, and wake of the FTX collapse
The cryptocurrency lender Genesis Global Holdco filed for bankruptcy late on Thursday, the latest crypto company to do so after the collapse of FTX, the exchange founded by Sam Bankman-Fried.
A year ago, Genesis and a group of other large lending firms drew millions of customers with the promise that they could deposit their crypto holdings and earn sky-high returns. But Genesis’ bankruptcy filing makes it the fourth major crypto lender to fail since last spring, when a downturn in the digital asset market sent prices plunging. Other major lenders that have gone out of business include Celsius Network and Voyager Digital, whose customers lost billions of dollars in deposits.
Genesis survived for longer, but suffered in the fallout from FTX’s implosion. In November, Genesis said it was freezing withdrawals, citing “market turmoil” caused by the bankruptcy of Mr. Bankman-Fried’s business.
The filing in bankruptcy court in the Southern District of New York covered three entities: Genesis Global Holdco and two of its subsidiaries, Genesis Global Capital and Genesis Asia Pacific.
United States
