{"id":290802,"date":"2023-01-20T06:25:07","date_gmt":"2023-01-20T06:25:07","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=290802"},"modified":"2023-01-20T06:27:06","modified_gmt":"2023-01-20T06:27:06","slug":"genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/","title":{"rendered":"Genesis Global caves to liquidity issues, files for Chapter 11 bankruptcy"},"content":{"rendered":"<p>Genesis Global \u2014 a Digital Currency Group (DCG) subsidiary \u2014 filed for Chapter 11 bankruptcy protection on Jan. 19 in the bankruptcy court of the Southern District of New York, it said in a press release.<\/p>\n<p>The derivatives, spot trading, broker-dealer, and custody arms of Genesis are not part of the bankruptcy filing and are operating normally, the firm said.<\/p>\n<h2>Restructuring<\/h2>\n<p>Under Chapter 11, the firm is considering restructuring, which will be led by an independent special committee of the board of directors, it said.<\/p>\n<p>The firm has between $1 billion and $10 billion in assets and liabilities, according to the <a href=\"https:\/\/restructuring.ra.kroll.com\/genesis\/\">press release<\/a>. Genesis said it has over $150 million in cash, providing &#8220;ample liquidity&#8221; to support its business operations and the restructuring process.<\/p>\n<p>The court-supervised restructuring will &#8220;provide an optimal outcome for Genesis clients and Gemini Earn users,&#8221; the firm said. Genesis owes $900 million to Gemini Earn users.<\/p>\n<p>The crypto lender is exploring a &#8220;dual track process&#8221; to pursue &#8220;sale, capital raise and\/or equitization transaction that would enable the business to emerge under new ownership,&#8221; it said.<\/p>\n<p>Genesis will start a marketing and sale process for its assets or raise capital and use the proceeds to pay back creditors. However, if the firm fails to close a sale or raise capital, creditors will receive ownership interests in Reorganized Genesis Global, according to the press release.<\/p>\n<p>The firm had been trying to raise capital for months without any results. Its parent firm DCG was reportedly considering <a href=\"https:\/\/cryptoslate.com\/dcg-scrambling-to-raise-funds-to-cover-genesis-3b-debt-burden\/\">liquidating <\/a>its venture capital holdings to cover Genesis' $3 billion debt burden.<\/p>\n<p>Genesis froze customer withdrawals in November, soon after the collapse of FTX. Earlier this month, the firm <a href=\"https:\/\/cryptoslate.com\/genesis-sacks-30-of-workers\/\">slashed its workforce by 30%<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Genesis Global \u2014 a Digital Currency Group (DCG) subsidiary \u2014 filed for Chapter 11 bankruptcy protection on Jan. 19 in the bankruptcy court of the Southern District of New York, it said in a press release. The derivatives, spot trading, broker-dealer, and custody arms of Genesis are not part of the bankruptcy filing and are [&hellip;]<\/p>\n","protected":false},"author":1386,"featured_media":290807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77901,60035],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Genesis Global caves to liquidity issues, files for Chapter 11 bankruptcy<\/title>\n<meta name=\"description\" content=\"Genesis&#039; custody, derivatives, broker-dealer, and spot trading business are not part of the bankruptcy proceedings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Genesis Global caves to liquidity issues, files for Chapter 11 bankruptcy\" \/>\n<meta property=\"og:description\" content=\"Genesis&#039; custody, derivatives, broker-dealer, and spot trading business are not part of the bankruptcy proceedings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-20T06:25:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-20T06:27:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/genesis-bankruptcy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monika Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monika Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#person\",\"name\":\"Monika Ghosh\",\"url\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"caption\":\"Monika Ghosh\"},\"jobTitle\":\"Former Reporter\",\"description\":\"Monika started reading about crypto in 2020 and went deeper and deeper down the rabbit hole. 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