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Another bankruptcy edging closer – crypto market can’t catch a break

Genesis, a subsidiary of Digital Currency Group, is unsuccessfully looking for funding that could rescue the troubled crypto firm.

Last year was tough on Genesis. The collapse of Three Arrows Capital (3AC), FTX, and other large crypto companies drew the whole market with it. This also applies to firms with exposure to them, such as Genesis.

Genesis in trouble

Genesis Global Capital, the institutional cryptocurrency brokerage whose lending unit stopped customer withdrawals afterย FTX failed, is getting ready to file for bankruptcy. Genesis is rumoured to be in secret talks with different creditor groups.

Related article:ย Ukraine wants to become the leading jurisdiction for digital assets

The company has warned that it could file for bankruptcy if it can’t raise money. Raising money, however, is more difficult in these times than ever before.ย In 2022, Genesis’ $2.4 billion loan to the hedge fund 3AC basically disappearedย because 3AC went bankrupt as it had large exposure to Terra Luna.

This ripple effect is tearing the largest crypto companies in the space apart and seems to have no end. When FTX went bankrupt back in November, Genesis was left racing to find new funding. As a result of the FTX collapse, the company’s institutional lending division had to halt its operations.

Conclusion

Markets are already in a very bad condition with many bankrupt billion-dollar companies like Terra Luna, 3AC, Voyager Digital, Celsius Network, FTX, etc. If no funding is found by Genesis, it can join other failed unicorns.ย 

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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