The Genesis cryptocurrency exchange and its two “daughters”, Genesis Global Capital and Genesis Asia Pacific, have filed for bankruptcy, which provides for the reorganization of the company and the restructuring of its debts. This was reported on the Genesis website.

Genesis File Crypto Exchange Due to Bankruptcy

Genesis filed for bankruptcy under Chapter 11 of the US Bankruptcy Code: allows you to reorganize the business and restructure debts instead of liquidating the company.

The Genesis problems turned out to be a consequence of the crisis in the crypto market, which was provoked by the collapse of the FTX exchange. Genesis devised a plan to get out of this situation: sell the business, raise new capital and/or issue shares, which would allow the business to find a new owner.

The company will begin the sale process to monetize its assets or raise capital in other ways and distribute the proceeds in “fair and equitable” payments to creditors. The company now has $150 million in cash to support operations and finance the restructuring process, Genesis said in a statement.

Genesis first warned investors of a potential bankruptcy in November 2022. The lack of liquidity the company faced was a result of the collapse of one of the largest crypto exchanges, FTX. After the publication of the scandalous investigation by CoinDesk, which spoke of the inability of the exchange to meet its obligations, investors began to massively withdraw funds from FTX.

FTX itself, or rather its employees, after filing for bankruptcy, was convicted of wasting the company’s money. FTX Property Holdings Ltd, a division of the stock exchange, has acquired 15 properties worth about $100 million, according to Reuters.

Author:

anastasia mariana

Source: RB

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I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.

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