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Genesis to exodus: bankrupt crypto lender winds down

The firm which owes creditors $3.4B reached an agreement in principle towards a restructuring plan.

Just a day after Genesis, the bankrupt crypto lending firm filed that it expects to provide a recovery of 70% to 90% for all unsecured creditors, the firm has decided to cease all operations.

Genesis exits crypto market

Genesis has brought its entire crypto trading venture to an end. The firm has decided that all operations including international spot and derivatives trading services will no longer exist.

The firm which was an affiliate of Barry Dilbert’s Digital Currency Group was once one of the largest derivatives trading desks. It filed for bankruptcy in January.

While Genesis Global Trading will wind down its US operations. GGC International Limited, another trading-focused entity affiliated with Genesis, will continue trading spot and derivatives.

“This decision was made voluntarily and for business reasons,” a spokesperson said.

Read more: Approved: FTX will start selling billions in Bitcoin, Solana and Ethereum following court approval

Creditors issues

The firm which owes creditors $3.4B reached an agreement in principle towards a restructuring plan.

According to the plan, Genesis Earn users are likely to recover 95% to 110% of their claims according to the filing.

 Genesis Bermuda Holdco Ltd. owns all of the shares of GGC International, which is based in the British Virgin Islands.

In addition, Genesis and Gemini are engaged in a court battle over charges of fraud. In July, Gemini filed a lawsuit against Digital Currency Group (DCG) and its CEO, Barry Silbert, alleging that both firms were responsible for “encouraging and supporting” fraudulent behavior through Genesis.

In response, DCG rejected these allegations as unfounded and slanderous, claiming that Gemini’s co-founder, Cameron Winklevoss, had planned them as a “publicity stunt.”

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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