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

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.