The FTX crash in November claimed several companies: crypto lender BlockFi and Core Scientific Inc, one of the largest publicly traded crypto mining companies in the United States.
Genesis, its parent Digital Currency Group and creditors have exchanged various proposals, but so far they have not been able to reach an agreement.
On the other hand, Barry Silbert, head of cryptocurrency conglomerate Digital Currency Group, has been reported to be at the heart of the cryptocurrency market contagion. One of DCG’s key assets, crypto lending unit Genesis Global Capital, owes creditors at least $1.8 billionaccording to Reuters.
Genesis entered a liquidity crisis and halted trading shortly after revealing on November 10 that it had $175 million locked up in a trading account of FTX.
Genesis suffered heavy losses due to loans it made to the now-defunct cryptocurrency hedge funds Alameda Research and Three Arrows Capital. Both Alameda and Three Arrows filed for bankruptcy last year.
Genesis laid off 20% of its employees in August 2022, citing market conditions. Then, earlier this month, it laid off 30% more of its workers after the CEO derar islim said the company was “reducing costs and driving efficiencies” across all of its businesses.
Source: Ambito
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