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Genesis preparing for bankruptcy filing - reports

Genesis preparing for bankruptcy filing - reports

Crypto broker Genesis is reportedly laying the groundwork for a bankruptcy filing which could come as soon as this week.

Bloomberg reported that Genesis, which is believed to owe creditors as muach as $3 billion, is in confidential negotiations with various creditor groups, with the company warning it could seek bankruptcy protection if it fails to raise capital.

Genesis parent Digital Currency Group (DCG), which has a venture capital portfolio worth around $500 million, has struggled to find outside investment, according to the FT.

Last month, Genesis Global Capital's lending unit laid off about 30% of its workforce as it faced up to the FTX fallout, which had already forced to it to stop customer withdrawals. The company has come under increasing pressure to make good on $900 million of locked deposits.

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