Bloomberg: Genesis to file for bankruptcy this week
In this, the company continues to negotiate on raising capital
19.01.2023 - 07:15
341
2 min
0
Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, according to people with knowledge of the situation.
The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it may need to file for bankruptcy if it fails to raise cash, Bloomberg previously reported.
Representatives at Genesis Global Capital didn’t immediately respond to requests for comment. A representative for DCG declined to comment. Talks are ongoing and plans could change, the people added.
Financial pressure at Barry Silbert’s DCG began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, soon after crypto exchange FTX — where Genesis held some of its funds — filed for bankruptcy. The failures have had ripple effects on crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss. Gemini Earn — a service that let Gemini’s users get yield for lending out their coins through Genesis — stopped redemptions as well.
Creditors, Genesis and DCG exchanged several proposals, but have so far failed to come to an agreement, the people said. Kirkland & Ellis and Proskauer Rose have been advising groups of creditors.
The company is working toward a restructuring plan and had swapped proposals with its creditors, some of whom had suggested receiving a mix of cash and equity from DCG, according to people familiar with the talks.
DCG told shareholders that it’s suspending quarterly dividends in an effort to conserve cash, according to a Jan. 17 letter to shareholders seen by Bloomberg. DCG property CoinDesk, a crypto news site, confirmed in a statement to Bloomberg Wednesday that it engaged Lazard as a financial adviser to explore options including a partial or full sale.
This material is taken from the website bloomberg.com.
Useful material?
Telegram 
Twitter Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Technologies
The company also unveiled its own blockchain adoption index
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$89 522
BTC
-1.35%
-
Ethereum
$3 059.08
ETH
-1.77%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.12
XRP
+1.9%
-
Dogecoin
$0.360207
DOGE
-1.58%
-
Cardano
$0.724147
ADA
+0.07%
-
Bitcoin Cash
$433.07
BCH
-1.77%
-
Polkadot
$5.67
DOT
+1.97%
-
Stellar XLM
$0.236575
XLM
+19.01%
-
Litecoin
$89.81
LTC
+0.95%