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

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

July 11, 2025
FINRA Advances Proposal to Allow Limited Use of Performance Projections

The Financial Industry Regulatory Authority (“FINRA”) is moving forward with a proposal that would give broker-dealers limited ability to market performance projections and targeted returns under specific conditions.

July 10, 2025
SEC Permanently Bars Brite Advisors USA Over Custody Rule Violations and Undisclosed Conflicts

The SEC has permanently barred Brite Advisors USA from operating as an investment adviser, citing serious custody rule violations and undisclosed conflicts of interest tied to its offshore affiliate, as reported by Financial Advisor News.

July 9, 2025
UBS Confirms Data Breach After Cyberattack on External Vendor

UBS Group AG has confirmed that a cyberattack on one of its third-party suppliers resulted in stolen company information, though no client data was compromised.