Crypto Lender Genesis Files For Bankruptcy

Posted on February 1st, 2023 at 12:56 PM
Crypto Lender Genesis Files For Bankruptcy

From the Desk of Jim Eccleston at Eccleston Law.

Cryptocurrency lender Genesis Global LLC has filed for bankruptcy as the crypto crisis spreads following FTX’s recent meltdown.

Genesis filed for Chapter 11 bankruptcy protection in the Southern District of New York. In court documents, Genesis outlined a $1 billion to $10 billion range for both assets and liabilities as well as identifying at least 100,000 creditors, with the top 50 unsecured claims constituting nearly $3.4 billion. Genesis filed for Chapter 11 protection in an attempt to sell assets or raise money as creditors are likely to take over the reorganized businesses if fundraising is unsuccessful, according to the company.

Chapter 11 protection permits a company to continue operating while determining how to repay creditors, and the company plans to utilize $150 million of in-house cash to fund its operations while in bankruptcy. According to court documents, redemptions and loan originations at Genesis will remain suspended and claims will be adjudicated in bankruptcy court. Genesis laid off nearly 30% of its staff in January while Interim Chief Derar Islim recently informed clients that the company needed “additional time” to solve the lending unit’s liquidity problem.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, crypto, ftx

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.