Crypto Firm Genesis Is Preparing To File for Bankruptcy

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.

Da-da-dum, dum, dum... another one bites the dust

[mobby_6kl]

Or is this a dupe?

Re:Da-da-dum, dum, dum... another one bites the du

[scdeimos]

If it's not a dupe yet, give it a couple of hours.

Re:Da-da-dum, dum, dum... another one bites the du

[neilo_1701D]

Or is this a dupe?

Crypto exchange xxx had links to FTX and goes bankrupt.

Not a dupe, but it's a story you've seen before...

Re:

[Comrade Ogilvy]

Maybe we should call this a "bankmanruptcy"?

Ironic

[Provocateur]

Genesis is a word usually associated with the beginning of something, like birth, something that holds something promising, like itâ(TM)s the first book in the Bible, even

Bankruptcy on the other hand is always the final chapter, like chapter 11.

Why all the long faces, no stress guys, I wonâ(TM)t take any more of your time

Re:

[iAmWaySmarterThanYou]

It's an echo.

You're going to hear more.

They just exchanged money

[gnasher719]

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:

[Anonymous Coward]

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

Apparently not enough :D

Re:

[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.

Re:

[Comrade Ogilvy]

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.

The time to make money is in a conflicted market

[smap77]

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.

Re:

[fwad]

It's really not. I suspect most governments are secretly (or not so secretly) wanting Crypto to blow up

Re:

[Anonymous Coward]

Cryptocurrencies are too much a part of the world economy for governments to not step in and give a TARP style bailout. Look how we are falling into recession right now, with the only real choice by Congress is to step up to the plate and do what was done with the banks. Otherwise, we are looking at a looming global economic collapse.

Found the guy who went all in and is now shitting his pants.

Re:

[AnOnyxMouseCoward]

That's only if the crypto bros truly infiltrated the main economy, i.e., bought real estate or companies with products. As it is, it seems most of them invested in each other's pyramid schemes. If the value of their coin falls, they don't have to cash out of real assets which would then endanger the economy, because they have few of those assets. That's the difference between this and 2008. MBS were based on actual mortgages, with actual houses as collateral. If they crash it means the mortgages aren't gett

Another Ponzi scheme popping?

[fbobraga]

This people must be behind bars...

Re:

[youngone]

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.

Need a crypto bro to explain

[iAmWaySmarterThanYou]

Where are the crypto bros on these articles to explain why all this is actually good for crypto's future values?

Re:

[youngone]

Somebody on Slashdot was telling me how he buys his winter firewood with bitcoin just a couple of weeks ago.

How is crypto

[wakeboarder]

Going to compete with cash? Moving cash is free in many respects, and it's a lot safer if done through normal regulated channels

Re:

[fwad]

I went to the casino the other night. Came away with 20% profit.

The real question is ... is playing blackjack on basic strategy a safer investment that crypto ?

Re:

[bn-7bc]

And a currency that is so volatile they stop being useful as currencies, and yes USD has inflation and it has spiked lately, but compared to most crypto currencies the loss in vakue the inflation represents is at keast somewhat predictable. If i give you a loan for USD 1K today which matures in a year with an inerest rate of lt's say 10% I can be ority certain that my purchasing power with that money+ interest will be about the same when you've paid everything back. Can you show me one single crypto curre

Re:

[diffract]

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.

If only their mining GPUs had blast processing

[scourfish]

Genesis would still be around if it had blast processing

"Laying the groundwork"

[EmagGeek]

Translation: Hiding assets