Genesis Files for Chapter 11 Bankruptcy in the Southern District of New York

Crypto firm Genesis files for Chapter 11 bankruptcy in Southern District of New York, with estimated liabilities of $1 billion to $10 billion and estimated assets of $1 billion to $10 billion, according to a filing.

Genesis Global Holdco LLC and two of its lending business subsidiaries, Genesis Global Capital LLC and Genesis Asia Pacific Pte. Ltd., filed for bankruptcy protection in the Southern District of New York. Genesis said that its other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

Genesis said that it has more than $150 million in cash on hand, providing ample liquidity to support its ongoing business operations and facilitate its restructuring. An “independent special committee” will lead its restructuring process, including its board of directors, towards coming up with the best outcome.

However, the filing excludes the firms other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading.

Previous reports had revealed that the firm was considering filing for bankruptcy protection in a situation whereby it could not obtain capital to deal with its liquidity crisis.

The firm published a press release on January 19, noting that it discussed with its advisors, creditors and parent company towards evaluating the best way to preserve assets and move the business forward.

“Genesis has now commenced a court-supervised restructuring process to further advance these discussions and reach a holistic solution for its lending business, which, if achieved, would provide an optimal outcome for Genesis clients and Gemini Earn users,” reads the press release.