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Crypto Firm Genesis to File for Chapter 11 Bankruptcy

Genesis, a cryptocurrency firm owned by Digital Currency Group and Barry Silbert, is reportedly planning to file for Chapter 11 bankruptcy.

Genesis logo inside the smartphone
Genesis logo inside the smartphone

The firm has been in an ongoing battle with the U.S. Securities and Exchange Commission (SEC) and was charged by the regulation firm last week for selling unregistered securities.

Genesis and Gemini Battle Leads to Bankruptcy

The Genesis and Gemini battle has been a dominant headline thus far in 2023 and crescendoed with last week's charges. Following a layoff of 30% of its workforce in early January and its highly publicized battle against the SEC and Gemini, the cryptocurrency lender, Genesis, has been forced to file for Chapter 11 bankruptcy.

Genesis and Gemini's Partnership Leads to Charges

Genesis has been the subject of public attacks by Gemini, who publicly stated the accounting errors and misleading tactics the cryptocurrency firm took in regard to its former collaborator. All of this followed the two platforms’ partnership in February of 2021, leading to the charges issued by the SEC last week.

Genesis to File for Bankruptcy Amidst Creditor Negotiations

The cryptocurrency firm is allegedly set to file for Chapter 11 bankruptcy this week. Additionally, Bloomberg reports the firm has been in “confidential negotiations with various creditor groups amid liquidity crunch.”