Crypto Lender Genesis Becomes Next Victim to File for Chapter 11 Bankruptcy

Crypto lender Genesis became the next victim to bite the dust from the contagion of FTX in the digital currency industry.

The heart of Barry Silbert’s Digital Currency Group; Genesis filed for Chapter 11 bankruptcy protection late Thursday night in Manhattan federal court, just days after the Securities and Exchange Commission filed suit against the crypto lender and its onetime partner, Gemini, for the offering and sale of unregistered securities.

According to the filing, Genesis had over 100,000 creditors, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars.

The company said that this only involves its crypto lending business, while derivatives and spot trading business will continue to operate unhindered.