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Crypto Firm Genesis Is Preparing To File for Bankruptcy (bloomberg.com) 30

Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, Bloomberg News reported Wednesday, citing people with knowledge of the situation. From a report: The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it may need to file for bankruptcy if it fails to raise cash, Bloomberg previously reported. Financial pressure at Barry Silbert's DCG began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, soon after crypto exchange FTX -- where Genesis held some of its funds -- filed for bankruptcy. The failures have had ripple effects on crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss. Gemini Earn -- a service that let Gemini's users get yield for lending out their coins through Genesis -- stopped redemptions as well.
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Crypto Firm Genesis Is Preparing To File for Bankruptcy

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  • by mobby_6kl ( 668092 ) on Wednesday January 18, 2023 @05:13PM (#63220824)

    Or is this a dupe?

  • by gnasher719 ( 869701 ) on Wednesday January 18, 2023 @05:33PM (#63220908)
    It looks like they all just swapped money around you give me five billion, I give six to the next one, who gives seven to the first, and it looks like we are all rich.

    And she one goes down, the next one first stops withdrawals, then goes bankrupt, then the next one goes down and do on. How many of these companies are there? How much money have they taken in from gullible "investors"?
    • Re: (Score:2, Funny)

      by Anonymous Coward

      How much money have they taken in from gullible "investors"?

      Apparently not enough :D

    • Re: (Score:2, Informative)

      by Anonymous Coward

      TBF, facilitating exchange is perfectly legit and can make you a lot of money if you have a high enough transaction volume and reasonable fees--it's pretty much what Visa does. You have to be trustworthy though, and actually perform exchanges and not hold client funds in pools that are larger than you claim, against which you borrow until the jig is up.

      • Being an exchange can be legit. But being bad at banking in another thing entirely.

        FTX went under at this point in history, not because a few billion disappeared into the pockets and investment portfolios of the polycule insiders, but because they sucked at investment/banking and lost more billions by other means. They thought they were growing to be sharks/whales who could manipulate the markets to their advantage, when they were actually fat minnows sitting in a barrel waiting for the bullet.

  • Amiright? Even if you're buying nothing and selling nothing, as long as there's a market for nothing then there's money to be made, people.

  • This people must be behind bars...
    • It's Cameron and Tyler Winklevoss. They'll be fine.
      They're just a couple of rich kids who have never really had to find a job. They'll probably just move into one of their parent's houses.
  • Where are the crypto bros on these articles to explain why all this is actually good for crypto's future values?

    • Somebody on Slashdot was telling me how he buys his winter firewood with bitcoin just a couple of weeks ago.
  • Going to compete with cash? Moving cash is free in many respects, and it's a lot safer if done through normal regulated channels
    • there are many ways they compete
      cash is devalued constantly by inflation (money printing), while bitcoin has a fixed supply.
      also moving cash across countries is very expensive, whereas moving 'crypto' by comparison is free.
  • Genesis would still be around if it had blast processing
  • Translation: Hiding assets

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