A lawyer for bankrupt crypto lending firm Genesis is optimistic the firm can resolve its creditor disputes as early as this week, and the company could come out of Chapter 11 proceedings by late May.
Genesis filed for Chapter 11 bankruptcy on Jan. 19. and had a restructuring plan in place to pursue a “sale, capital raise, and/or an equitization transaction” in order to potentially “emerge under new ownership.”
The bankruptcy comes nearly two months after Genesis suspended withdrawals in November 2022 citing market turbulence caused by the bankruptcy of crypto exchange FTX.
Genesis reported having just over $5 billion in assets and liabilities and owing over 100,000 creditors at least $3.4 billion.
Its largest debtor is its parent company, Digital Currency Group (DCG), which owes Genesis around $1.65 billion inclusive of $575 million of loans due in May and a $1.1 promissory note maturing in 10 years’ time.