Crypto Firm Genesis Is Preparing To File for Bankruptcy

Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, Bloomberg News reported Wednesday, citing people with knowledge of the situation. From a report: The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it may need to file for bankruptcy if it fails to raise cash, Bloomberg previously reported. Financial pressure at Barry Silbert's DCG began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, soon after crypto exchange FTX -- where Genesis held some of its funds -- filed for bankruptcy. The failures have had ripple effects on crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss. Gemini Earn -- a service that let Gemini's users get yield for lending out their coins through Genesis -- stopped redemptions as well.

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