Genesis Global Holdco LLC and its two lending subsidiaries, Genesis Global Capital LLC and Genesis Asia Pacific Pte. Ltd., filed for Chapter 11 bankruptcy in the New York federal district court, which marks the collapse of yet another major crypto brokerage firm.
The price of Bitcoin, the world's largest cryptocurrency, dropped roughly 0.5% on the news.
"The first shall be the last," former BitMEX CEO Arthur Hayes commented on the bankruptcy filing.
Genesis's filing comes after months of tumultuous market conditions that heavily impacted the crypto industry as a whole, leading to massive losses for many lending firms.
Alex DovbnyaAs part of the bankruptcy process, the firm presented a cohesive roadmap to an eventual exit which would include a restructuring plan that is meant to provide adequate funding while honoring its obligations to clients. This was backed by an independent board of directors with Derar Islim being appointed as Interim CEO in August 2022.
Genesis has also secured $150 million in cash to provide liquidity while they restructure their operations and move forward with creditor payments.
In statements on the matter by pertinent parties, such as Islim and independent director Paul Aronzon, there seemed an air of optimism even though there is much hard work yet to be done.
Aronzon claims that it is possible to reach "the best solution" for clients and other stakeholders.
Dan Burgin
Vladislav Sopov