Following the footsteps of embattled FTX and BlockFi, another cryptocurrency lender Genesis Global Holdco LLC, and two of its subsidiaries have filed for bankruptcy in New York court, indicating how the crypto fall has created a ripple effect in the market.
Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific, filed voluntary petitions under the bankruptcy code for with the Southern District of New York court.
It, however, added that Genesis’ derivatives and spot trading, broker-dealer, and custody businesses were not part of the bankruptcy process, and would continue their client trading operations.
Genesis’ lending unit said it had both assets and liabilities in the range of $1 billion to $10 billion, and more than 100,000 creditors in its filing.
In a statement, Genesis Global Holdco said that it is mulling to push for a potential sale or equitisation transaction to pay creditors, claiming that it had $150 million in cash to support the restructuring.
FTX says Cryptos worth $415 million stolen, founder Sam Bankman-Fried says FTX is solvent
On January 12, the US Securities and Exchange Commission (SEC) charged Genesis with illegally selling securities to investors through the Earn program.
Genesis brokered digital assets for financial institutions such as hedge funds and asset managers and had almost $3 billion in total active loans at the end of the third quarter, down from $11.1 billion a year earlier, according to its website.
Threat to Sam Bankman-Fried’s life?
Meanwhile, FTX founder Sam Bankman-Fried’s lawyers have claimed a security threat against the 30-year-old billionaire, after a car drove into a metal barricade outside the crypto trader’s home in California.
The billionaire’s lawyers in its filing in Manhattan federal court said that three men got out of the car and told a security officer guarding his home, “You won’t be able to keep us out.”
The men, who have not been identified, then got back in the car and drove away.
The lawyers, however, did not specify when the incident took place, describing it only as recent.
Their brought up the incident in the court in response to a major push from the media organisations to make public the names of two people who helped guarantee Bankman-Fried’s bond alongside his parents.
FTX founder wants to start a new business
Bankman-Fried told BBC from the Bahamas that he would “give anything” to start a new business to help his customers who lost their investments.
“I’m going to be thinking about how we can help the world, and if users haven’t gotten much back, I’m going to be thinking about what I can do for them,” Bankman-Fried told the BBC.
“And I think at the very least I have a duty to FTX users to do right by them as best as I can.”
(With inputs from agencies)
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