It has been claimed that the crypto lending platform Genesis, a subsidiary of Digital Currency Group (DCG), the giant investor of the cryptocurrency market, is planning to file for a possible bankruptcy in the near future.
Bloomberg’s January 18 Sources close to the subject said that Genesis will be released later this week. chapter 11 restructuring to court application He said he prepared the groundwork for himself.
According to the information conveyed by The Block, Genesis agreed with the creditors. ongoing negotiations making payments to creditors such as Gemini under the restructuring plan a or two years tolerance period from roof company DCG in exchange for recognition cash and stock mix committed a payment.
Genesis’s $900 million is owned by popular US cryptocurrency exchange Gemini. “Earn” to various companies in the market, including their customers 3 billion He owes more than a dollar. The company has in the past liquidity enough in the middle of the jam unable to raise cash He said he could file for bankruptcy in the scenario.
roofing company of DCG To finance Genesis’ debts 500 million dollar prepared to sell assets had been transferred. The sale means that Genesis’ debts are quite small some of them welcomes although, according to experts, with creditors reach an agreement enough for a beginning it could be.
The controversy between Gemini and Genesis of the US Securities and Exchange Commission (SEC) According to experts, the news of bankruptcy emerged after his involvement of the SEC All outlets for Genesis that you closed a sign of it could be. SEC announced that Genesis and Gemini unregistered sale of securities accused him.
on the other hand DCG not long ago Genesisexisting due to difficulties caused byStrengthening the balance sheet by maintaining liquidity to shareholders for suspends the distribution of dividends (dividends) announced.