More Crypto Struggles – Crypto Lender Genesis Files for Bankruptcy 💥

More Crypto Struggles – Crypto Lender Genesis Files for Bankruptcy

Bad news has struck the crypto world once again as New York-based cryptocurrency lender Genesis files for bankruptcy. Genesis has become the next major crypto firm to file for Chapter 11, following suit alongside other giants such as BlockFi, FTX, Voyager, and Celsius. The news comes following the major tolls in the price of cryptocurrencies beginning in late 2021. Genesis is part of a larger conglomerate company known as Digital Currency Group (DCG), which also owns the likes of CoinDesk, Grayscale, Luno, and more. DCG, however, is not a part of the filing and will continue its business, but Genesis is now under legal debt to pay back their parent firm of over $1.6 billion dollars. Customers with holdings under Genesis will be paid back in cash and equity following the firm’s restructuring, which could take upwards of several years.

As FTX just recently filed for bankruptcy in November, several hypothesized their loss would ripple throughout the crypto industry, and in Genesis’ case, it unfortunately did; Genesis had lent several hundreds of millions of dollars to FTX’s affiliate trading firm Alameda Research, which is currently under investigation for defrauding, and potentially laundering, customer’s assets. On a larger note, Genesis had also lent close to $2.4 billion to crypto hedge fund Three Arrows Capital, which filed for bankruptcy last summer. Regardless, Genesis has reported up to $5.1 billion in total liability spread across over 100,000 creditors, which will be hoped to be repaid following their restructuring.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.