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DCG’s crypto brokerage Genesis files for bankruptcy

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Crypto brokerage firm Genesis Global Capital filed for Chapter 11 bankruptcy on Thursday in the Southern District of New York, according to court documents.

See related article: DCG’s crypto lender Genesis may file for bankruptcy, according to Bloomberg report

Fast facts

  • The bankruptcy petition listed US$1 billion to US$10 billion as the range of estimated assets and liabilities, with more than 100,000 creditors.
  • Genesis suspended user withdrawals on Nov. 16 after the failure of the FTX cryptocurrency exchange, citing “abnormal withdrawal requests” that exceeded its liquidity at the time. Genesis also said it has US$175 million of its assets locked in the bankrupt FTX.
  • Prior to the FTX collapse, Genesis was also exposed to the bankrupt crypto hedge fund Three Arrows Capital (3AC), where parent company Digital Currency Group claims to have assumed part of the liabilities.

See related article: DCG writes to shareholders to detail finances amid US$900 mln Twitter feud with Winklevoss

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