Cryptocurrency company Genesis may officially declare bankruptcy in the coming months. The subsidiary of the Digital Currency Group has four months to resolve the bankruptcy process.
Genesis may declare bankruptcy by this date
The crypto lender aims to complete the bankruptcy process within the next four months. The company stated in its bankruptcy announcement that it is considering selling the company or converting it into equity to operate under new ownership. The solution stemming from the Chapter 11 process also affects Gemini users. The company said it is evaluating options to ensure the best possible outcome for Genesis customers and Gemini Earn users. cryptocoin.com We have included the timeline of the Genesis crisis in this article. The deadline Genesis has to resolve the situation is based on Cameron Winklevoss’ statements…
According to Walter Bloomberg on Twitter, Genesis is considering declaring bankruptcy by May 19. The bankruptcy date comes after Gemini co-founder Cameron Winklevoss threatened to sue Barry Silbert and the Digital Currency Group (DCG) unless a fair settlement was reached to Earn users. Winklevoss, on the other hand, acknowledged that the Genesis bankruptcy was a critical step towards recovering Gemini Earn user funds. Gemini’s co-founder stated that his firm will work to hold Silbert and DCG accountable:
In bankruptcy court, we will use every tool at our disposal to maximize recovery for Earn users and other parties within the bankruptcy court’s jurisdiction.
Genesis can use Grayscale’s products to pay off debts
In this context, time will tell whether Silbert has taken any concrete action regarding DCG’s subsidiaries such as the Grayscale Bitcoin Trust, the world’s largest Bitcoin fund. Meanwhile, despite the Genesis chapter 11 launch news, Bitcoin (BTC) and Ethereum (ETH) are reacting. On the other hand, the US Dollar Index (DXY) remains low amid growing concerns about the economic slowdown.
Cryptocurrency market remains strong despite news of bankruptcy
According to CryptoQuant analysis conducted on Jan. 19, multiple signals are determining the start of Bitcoin’s next bull run. One of the biggest observations was that BTC traders have shifted their coins from the spot to the derivatives market as it allows them to take advantage of leverage. Both BTC and ETH remain above critical supports as low volatility fades amid news of bankruptcy.
However, there is still a significant potential downside risk at the time of writing. A certain major risk has been added to the solvency of the Digital Currency Group (DCG) and Genesis, thanks to GBTC’s mismanagement. A potential mega-liquidation associated with this risk could trigger another massive sell-off, potentially eroding BTC’s latest gains.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.