Genesis Global Capital Prepares to File for Bankruptcy

Posted on January 19th, 2023 at 2:04 PM
Genesis Global Capital Prepares to File for Bankruptcy

From the Desk of Jim Eccleston at Eccleston Law.

Genesis Global Capital is preparing to file for bankruptcy as soon as this week, according to sources interviewed by Bloomberg News.

Genesis, which is the cryptocurrency lending unit of Digital Currency Group, has participated in confidential negotiations with several creditor groups amidst a liquidity crisis. Bloomberg previously reported that Genesis had warned that it may pursue bankruptcy if the business fails to raise sufficient funds.

Digital Currency Group initially began to face financial pressure after the collapse of hedge fund Three Arrows Capital. Genesis additionally suspended withdrawals last November after FTX, which held certain funds for Genesis, filed for bankruptcy protection. Genesis, Digital Currency Group and various creditor groups have exchanged numerous proposals, but the parties have yet to come to an agreement. However, negotiations are ongoing and plans may change, according to sources.

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

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive



You guys are good!

Mike L.


November 28, 2023
Arbitration Mandated for Former Morgan Stanley Advisors' Class Claim on Deferred Compensation

A federal judge in Manhattan has granted Morgan Stanley’s request to transfer a potential class action lawsuit to arbitration.

November 28, 2023
Wells Fargo Under SEC Scrutiny for Cash Sweep Programs

The Securities and Exchange Commission (SEC) is investigating Wells Fargo & Company over cash sweep options provided to investment advisory clients.

November 22, 2023
FINRA Alleges $2 Million in Client Losses and $2 Million in Commissions Due to Advisor's Churning

According to a Financial Industry Regulatory Authority (FINRA) complaint, Stewart "Paxton" Ginn excessively traded accounts over two and a half years, resulting in $2.22 million in losses and $2.24 million in commissions for him and his firm.