🚨Crypto lending firm Genesis files for bankruptcy

Genesis Global Capital, a crypto lending and trading conglomerate of more than 200 businesses, filed for bankruptcy, late Thursday as the fallout from the meltdown of the FTX exchange continues, per a report by the Financial Times.

The company, one of FTX’s biggest lenders, had previously suspended withdrawals in November and cut 30% of its staff earlier this month.

The bankruptcy follows months of uncertainty at the crypto firm after it was plunged into financial turmoil following FTX's collapse and earlier exposure to failed crypto hedge fund Three Arrows Capital in the same year - 2022.

In its filing published late Thursday, Genesis Global Capital estimated more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets. The two other entities estimated their assets and liabilities in the $100 million and $500 million range, respectively.

The company owes over $3.5 billion to its top 50 creditors, among which include Crypto exchange Gemini, trading giant Cumberland, Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund, according to the bankruptcy filing.

Per a recent report by Coindesk, the Crypto lender has now turned out to be the largest unsecured creditor of FTX.com and its affiliated companies, as it is owed $226.3 million.

Just like FTX’s bankruptcy impacted many other parts of the crypto industry, this development threatens to spread the crypto contagion even further.