Genesis Global, part of the Digital Currency Group (DCG), recently filed for Chapter 11 bankruptcy protection in the federal district court of New York. The news comes after the company’s attempt to raise cash for its troubled credit unit failed and cut 30 percent of its employees in a new layoff earlier in the month.
Genesis has been resisting for a while, after suffering serious losses last year after cryptocurrency hedge fund Three Arrows Capital (3AC) and cryptocurrency exchange FTX went bankrupt. Creditors were considering potential options to avoid bankruptcy.
Prior to that, Genesis announced that 175 million dollars used for derivatives trading remained in FTX after the cryptocurrency exchange went bankrupt. Genesis said in a statement to customers on January 4 that it was working to find a solution to get the credit unit out of its predicament, but that it needed more time to do so.