[ad_1]
The Internal Revenue Service, Securities and Exchange Commission, and the US Attorney’s office for the Southern District of New York are among several creditors listed in court documents filed Monday.
Genesis Global Holdco files for bankruptcy protection last week in the US Bankruptcy Court for the Southern District of New York. When filing for bankruptcy, the company said it had more than $150 million in cash to provide “sufficient liquidity” to support its business operations and facilitate the restructuring process.
Many creditors’ names have been redacted. Others include the law firm Norton Rose Fulbright US LLP and the Stellar Development Foundation, a non-profit organization.
The company took a financial hit following the collapse of crypto hedge fund Three Arrows Capital and exchange FTX last year. The company stopped drawing and originating new loans from its loan affiliates on November 16. Previously, Genesis Global Trading said its derivatives business had $175 million stuck on FTX after the crypto exchange fiasco.
On January 12, the SEC charged Genesis Global Capital LLC and Gemini Trust Company LLC with the offering and sale of unregistered securities through the Gemini Earn loan program. The agency said the program is being offered to retail investors, some of whom are in the US
The US regulator said Genesis, which is part of Digital Currency Group, entered into an agreement in December 2020 with Cameron Winklevoss-led Gemini to offer Gemini customers the opportunity to lend their crypto to Genesis in exchange for Genesis’ promise to pay interest. The program has been the subject of a public battle between the company’s two former partners.
© 2023 Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
[ad_2]
Source link
