Cryptocurrency His company, Genesis Global Capital, is preparing to file for bankruptcy this week, according to people familiar with the matter.
Genesis Under Digital Currency Group Conducts Confidential Bankruptcy Negotiations with Creditors
Genesis, the cryptocurrency lending division of Digital Currency Group, is holding confidential talks with various creditor groups due to liquidity crunch. Bloomberg previously reported that the company had warned that if it couldn’t raise cash, it might have to file for bankruptcy.
Genesis Global Capital representatives have not yet responded to requests for comment. A representative from DCG declined to comment. The sources added that talks are ongoing and plans may change.
Financial pressure at DCG, headed by Barry Silbert, began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, shortly after crypto exchange FTX, where it holds some of its funds, filed for bankruptcy.
The setbacks also had a knock-on effect on the crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss. Gemini Earn, a service that allows Gemini users to earn returns for lending their coins through Genesis, has also stopped payments.
In a January 17 letter to shareholders seen by Bloomberg, DCG said it was suspending quarterly dividends in an effort to save shareholders cash.
Barry Silbert has made frequent statements recently that DCG and Genesis are separate companies.
*Not investment advice.
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