Cryptocurrency lender Genesis has filed for Chapter 11 bankruptcy in the Southern District of New York with estimated liabilities of $1 billion to $10 billion and assets in the same range.
The company had previously been considering filing for bankruptcy protection if it was unable to raise capital to stem its liquidity crisis.
The company’s Chapter 11 plan sees it contemplating a “dual track process” pursuing a “sale, capital raise, and/or an equitization transaction” that would apparently enable the business “to emerge under new ownership.”
The derivatives, spot trading, broker-dealer, and custody businesses of Genesis are not part of the Chapter 11 proceedings and will continue operations.
The restructuring process will be led by an “independent special committee” of the company’s board of directors, and Genesis says the process is aimed at providing “an optimal outcome for Genesis clients and Gemini Earn users.”
