Crypto brokerage firm Genesis Global Capital filed for Chapter 11 bankruptcy on Thursday in the Southern District of New York, according to court documents.
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- The bankruptcy petition listed liabilities as between US$1 billion to US$10 billion, with more than 100,000 creditors. Genesis listed its estimated assets in the same range.
- Genesis suspended user withdrawals on Nov. 16 after the failure of the FTX cryptocurrency exchange, citing “abnormal withdrawal requests” that exceeded its liquidity at the time. Genesis also said it had US$175 million of its assets locked in the bankrupt FTX.
- Prior to the FTX collapse, Genesis was also exposed to the bankrupt crypto hedge fund Three Arrows Capital (3AC), where parent company Digital Currency Group claims to have assumed part of the liabilities.