Genesis Global Holdco, the parent company of cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection on January 20.
The move came after Genesis Global Capital halted customer repayments on November 16, raising concerns about the potential failure of other firms.
According to bankruptcy records, Genesis Global Capital named over 100,000 creditors in a “mega” bankruptcy filing, with total obligations ranging from $1.2 billion to $11 billion.
Despite months of speculation about the potential for bankruptcy, the news still shocked many in the cryptocurrency industry.
The U.S. Securities and Exchange Commission (SEC) had just launched a complaint against Genesis and its ex-partner Gemini for the alleged illegal sale of securities, adding to the company’s woes.
Digital Currency Group (DCG), which owns CoinDesk and is the parent company of Genesis Global Holdco and its subsidiaries GGC and…
