According to the news of the Wall Street Journal based on people close to the subject, the huge cryptocurrency credit institution Genesis Global Trading Inc. laid off 30% of its staff and is considering filing for bankruptcy.
Some of the people in question said the layoffs were not limited to a single department and were company-wide.
Cryptocurrency Company Genesis Evaluates Chapter 11 Possibility of Bankruptcy, According to WSJ Sources
Some of these resources are with investment bank Moelis & Co. to consider Genesis’ options for the future, including a potential filing for Chapter 11 bankruptcy. He said he was working with
A Genesis spokesperson explained that the firm is working with its advisors “to protect client assets and move the business forward.”
Genesis is currently bitcoin The stock market suffered huge losses due to loans FTX made to bankrupt trading firm Alameda Research and crypto hedge fund Three Arrows Capital. Both Alameda and Three Arrows filed for bankruptcy last year.
A Genesis spokesperson released the following statement:
“As we continue to meet unprecedented challenges in the industry, Genesis has made the difficult decision to reduce our workforce globally. These measures are part of our ongoing efforts to move our business forward.”
With the collapse of FTX, Genesis’ troubles deepened even more. According to people familiar with the matter, Genesis lent at least hundreds of millions of dollars to FTX’s sister trading firm Alameda Research before its collapse in November.
Genesis stopped loan purchases and repayments on November 16. As a result of Genesis’ move, $900 million of client funds from crypto exchange Gemini are stuck in Genesis. Genesis was using Gemini as a partner for its returns program.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!