DCG-affiliated crypto company Genesis is preparing to file for chapter 11 bankruptcy.
According to anonymous sources, the company is laying the groundwork for filing for bankruptcy this week.
Genesis Prepares to File for Bankruptcy
Digital Currency Group’s crypto lending platform is holding confidential talks with various potential buyers amid the liquidity crisis.
The company recently announced that it could file for bankruptcy if it fails to raise funds.
Representatives of Genesis Global Capital and DCG declined to comment on the matter for now. Sources stressed that talks are ongoing and plans may change.
Financial pressure at Barry Silbert’s companies began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals following the collapse of FTX. This situation also affected Gemini, the exchange of the Winklevoss brothers. The two companies had partnered on an Earn program.