Cryptocurrencies, Genesis declares bankruptcy and the market doesn’t care: Bitcoin, ETH and Solana are not losing ground.
Another player in the cryptocurrency sector declares bankruptcy: Genesis takes the books to court, it is the first illustrious victim after the collapse of FTX.
Another excellent player in the cryptocurrency sector files for bankruptcy: Genesis takes the books to court, it is the first illustrious victim after the collapse of FTX. The contagion, however, is proving to be much more contained than imagined.
Genesis offered a cryptocurrency lending service . He was considered a ‘big fish’ in the industry, but like FTX he filed for bankruptcy in federal court in Manhattan. The company is suing more than 100,000 creditors, reporting aggregate liabilities of between $1.2 billion and $11 billion.
The holding companies engaged in the cryptocurrency lending business have declared bankruptcy. Derivatives and spot trading activities remain healthy and operational (almost certainly in view of a transfer to third parties). Genesis Global Trading will also survive.
«We believe that a restructuring through Chapter 11 is the best way to preserve our assets and deliver the best results to all parties involved», reads the laconic statement presented by Genesis which, among other things, also mentions the collapse of FTX and Arrows Capital as the reasons behind the market instability which also led to its debacle.
Despite the umpteenth bankruptcy, the market seems to have reacted well: no major collapses have been reported either on Bitcoin , or on the other main alt-coins, such as Ether and Solana . Rumors about Genesis’s difficulties had been circulating for quite some time now and had probably already been – as they say – priced by investors.