The cryptocurrency lending company Genesis Global Capital is reportedly getting ready to file for bankruptcy, according to the most recent rumors.
According to a report by Bloomberg, sources close to the company predict that Genesis may file for bankruptcy as soon as this week.
In an effort to avert a possible declaration of bankruptcy, Genesis Global Capital enlisted the assistance of the investment firm Moelis & Company in November of last year. In later developments, it became clear that creditors of Genesis had consulted the legal firm Proskauer Rose in order to investigate potential alternatives to the company filing for bankruptcy.
This month, the United States Securities and Exchange Commission (SEC) brought charges against Gemini and Genesis for offering unregistered securities to the general public and evading disclosure rules that are meant to safeguard investors. In the meanwhile, Cameron Winklevoss, one of the co-founders of Gemini, has written two open letters that are directed towards Barry Silbert, the CEO of Digital Currency Group (DCG), which is Genesis’s parent company.
In the event that Genesis filed for bankruptcy, the company would follow in the footsteps of other defunct cryptocurrency companies such as Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, FTX, and BlockFi.
Compiled by Coinbold
