Genesis Cryptocurrency Lending Platform Is Declaring Bankruptcy

According to a report by Bloomberg News on Wednesday, citing individuals with knowledge of the issue, cryptocurrency lender Genesis Global Capital reportedly intends to file for bankruptcy as soon as this week.

After a major cryptocurrency exchange went down on November 16, the company stopped customers from getting their money back. For weeks, everyone knew that the company would soon file for bankruptcy.

BlockFi is a company that lends money to cryptocurrency. Core Scientific Inc. is one of the largest cryptocurrency mining companies in the United States that is traded on a public stock market. Both filed for bankruptcy protection in the months that followed the collapse of FTX in November. They are two of the victims that the collapse of FTX has claimed.

Genesis, its parent company Digital Currency Group, and its creditors have gone back and forth on several different ideas. Still, they have yet to agree. According to a report by Bloomberg, Kirkland & Ellis, and Proskauer Rose, law firms have been providing advisory services to various groupings of creditors.

A request for comment made by Reuters was not immediately met with a response from Genesis. Genesis is also embroiled in a legal battle with Gemini. Cameron and Tyler Winklevoss, identical twins, established this cryptocurrency exchange.