Crypto Lender Genesis is Gearing Up to File Bankruptcy

Genesis is reportedly preparing to file for bankruptcy sometime this week as troubles mount for its owner, DCG.

Genesis written in white words against black background
The report comes among increased instability in the crypto market. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

Amid financial troubles and lawsuits, crypto firm Genesis Global Capital is preparing to file for bankruptcy.

Genesis is currently negotiating with a number of creditor groups and could potentially file within the next few days, according to Bloomberg.

The crypto lender is owned by Digital Currency Group (DCG), a venture capital company. DCG’s crypto hedge fund unit, Three Arrows Capital, went bankrupt in June.

DCG also owns crypto news outlet CoinDesk, which is reportedly being shopped for a possible sale.

User withdrawals from Genesis have been paused since November, after the company announced it lacked sufficient funds following the collapse of crypto exchange FTX and related instability in the market.

Earlier this month, Genesis was also sued by the U.S. Securities and Exchange Commission (SEC) for an unregistered lending program with crypto exchange Gemini Trust. The program, called Gemini Earn, allowed Gemini users to loan assets to Genesis in return for high interest rates. The program has since been terminated, with Genesis allegedly owing 340,000 investors approximately $900 million.

Genesis did not respond to requests for comment.

Crypto Lender Genesis is Gearing Up to File Bankruptcy