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

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

October 15, 2025
SEC Accuses Florida Insurance Agent of $52 Million Unregistered Securities Scheme

The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Florida insurance agent Charles D. Oliver, alleging he illegally sold about $52 million in unregistered oil and gas securities to roughly 50 retail investors, including retired seniors.

October 14, 2025
Morgan Stanley's Termination of Financial Advisor Highlights Scrutiny Over U-5 Filings

Morgan Stanley recently terminated a 25-year industry veteran in Miami, underscoring the heightened scrutiny surrounding U-5 filings and the challenges that accompany them.

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.