According to the latest reports, crypto lending firm Genesis Global Capital is preparing to file for bankruptcy.
As per a Bloomberg report, insiders believe that Genesis could declare bankruptcy as soon as this week.
Last November, Genesis Global Capital tapped investment bank Moelis & Company as a restructuring expert to prevent potential bankruptcy. Later it was revealed that Genesis creditors were seeking options to avoid a bankruptcy filing by getting advice from the law firm Proskauer Rose.
This month, US SEC charged Gemini and Genesis for selling unregistered securities to the public, bypassing disclosure requirements designed to protect investors. Meanwhile, Gemini Co-founder Cameron Winklevoss wrote two open letters against Barry Silbert, the CEO of Digital Currency Group (DCG), the parent company of Genesis.
If Genesis declared bankruptcy, it would join Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, FTX, and BlockFi as a collapsed crypto firm.
