ANI
22 Jan 2023, 11:33 GMT+10
Tokyo [Japan], January 22 (ANI): US-based cryptocurrency lender Genesis Global Capital became the latest company to file for bankruptcy protection after the collapse of crypto exchange operator FTX, NHK World reported.
The company, plus its subsidiaries filed for Chapter 11 bankruptcy protection with a US court on Thursday.
Company officials blame the failure on the low liquidity of the crypto market caused by last November's collapse of FTX, and other abnormal developments in the industry in recent months, NHK World reported.
According to the documents shown by the court, Genesis Global Capital has debt, between one to ten billion dollars and creditors numbering more than 100,000.
Crypto lender Blockfi also filed for bankruptcy protection in November.
Leading crypto exchange operator Coinbase halted its Japanese operations this month, citing the poor business environment, as per NHK World.
According to Al Jazeera, the company in a statement stated, "Genesis has taken strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future."Genesis added that its subsidiaries involved in the derivatives, spot trading and custody businesses, as well as its brokerage arm Genesis Global Trading, were not included in the filing and would continue operations.
Earlier, in November, Genesis halted the customer withdrawals after the downfall of FTX and even negotiated with the creditors and tried to secure fresh capital since.
The crypto lender earlier this month laid off 30 per cent of its staff, the Wall Street Journal reported.
Genesis' owner DCG said in a statement that neither DCG nor its employees, including those sitting on the Genesis board, were involved in the decision to file for bankruptcy, reported Al Jazeera.
"Genesis has its own independent management team, legal counsel, and financial advisors, and appointed a special committee of independent directors, who are in charge of the Genesis Capital restructuring," the statement said. (ANI)Get a daily dose of Business Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Business Sun.
More InformationNEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
CULVER CITY, California: TikTok is preparing to roll out a separate version of its app for U.S. users, as efforts to secure a sale...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
PALO ALTO/TEL AVIV: The battle for top AI talent has claimed another high-profile casualty—this time at Safe Superintelligence (SSI),...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
California [US], July 9 (ANI): Google CEO Sundar Pichai said on Tuesday that the company has started to roll out its 'AI Mode' in Search...