The cryptocurrency lender Genesis Global Capital and Genesis Global Holdco and another subsidiary have filed for Chapetr 11 Bankruptcy in New York, as widely expected. The company is a casualty of the FTX collapse. That’s because it extended significant loans to Alameda, the market maker and hedge fund at the center of the FTX failures. It also made a $1.2 billion loss from the collapse of Three Arrows Capital (3AC) earlier in 2022.
However, the crypto custody and trading arms are not part of the bankruptcy procedure.
According to a statement, the companies in Chapter 11 aim to pursue ‘a sale, capital raise and/or equitization transaction’.
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