File for bankruptcy defense from crypto lending platform Genesis

Institutional risks continue in the crypto asset market, which has been showing a positive outlook with the rising risk appetite in recent days. Crypto-asset lending platform Genesis has filed for bankruptcy protection.

Crypto-asset lending platform Genesis Capital has filed for bankruptcy protection.

The filing for bankruptcy protection under Article 11 was filed with the Southern District Court of New York on Thursday.

Digital Currency Group, the main shareholder of Genesis Capital, had been conducting confidential talks with creditors for a period of time to overcome the current liquidity crisis and stated that it would be necessary to file for bankruptcy if cash could not be obtained.

Following the noisy bankruptcy process of FTX, the biggest crisis of 2022 in crypto, Genesis was expected to experience the same fate.

It was warned that Genesis, which suspended filming after the events at FTX, would go bankrupt without funding.

Sources told Bloomberg that the company is seeking new financing for its credit unit and has warned potential investors that it will file for bankruptcy if these efforts fail.

Sources said the company was seeking $1 billion in funding. It was stated that the company has not been successful in this fund quest so far, and Binance, the whale of the division, also knocked on the door in its unsuccessful attempt.

Genesis, which had $ 175 million in its FTX account, stopped shooting as of November 10.