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

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

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.