Genesis Files for Bankruptcy Protection After SEC Charges and Crypto Industry Collapses

1: genesis, a subsidiary of digital currency group (dcg), filed for chapter 11 bankruptcy late thursday. along with genesis, crypto exchange gemini was charged with violating securities law by the sec, and had partnered with genesis on the gemini earn program, which was eventually terminated two weeks ago.

2: this filing took place late thursday, and the two companies had been linked through their partnership in the gemini earn program. paul aronzon, an independent director at genesis, added in the announcement.

3: genesis was adversely impacted by two of the largest collapses in the crypto industry last year, and had more than $150 million in cash on hand. an in-court restructuring was seen as the most effective avenue to preserve assets and create the best possible outcome for all stakeholders. genesis sought to implement a path to maximize value and provide the best opportunity for its business to emerge well-positioned for the future. mirana corp., moonalpha financial services, coincident capital, donut, inc., altcoinomy, streami inc., and heliva international were the top creditors of genesis, each with an unsecured claim of $50 million to $150 million.

By Evey Lovelace

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