Crypto lender Genesis is close to filing for bankruptcy

Genesis, a cryptocurrency lender, plans to file for bankruptcy as early as this week. Since its deathand FTX's bankruptcy in November, it was expected thatthe company will file for bankruptcy. The company has been discussing a pre-made bankruptcy plan with creditors, which involves entering into a restructuring agreement before filing for bankruptcy. In bankruptcy court, this agreement will become legal. Genesis said it had $175 million locked up in an FTX trading account.

Previously, Genesis mentioned that the company hadtrading relations with the cryptocurrency exchange. But it did not maintain a credit relationship with either FTX or Alameda Research. For selling securities to retail investors without registering their offers through the Gemini Earn crypto asset lending scheme. Through this unregistered deal, Genesis and Gemini raised hundreds of thousands of dollars worth of crypto assets from investors.

Digital Currency Group (DCG) may filestatement this week. The company announced that it has stopped paying dividends. And she told shareholders that she was focusing on strengthening her balance sheet through spending cuts as she grappled with the fallout from the FTX crash, which in turn was triggered by a message from one of her employees. The FTX crash could have had a significant impact on the overall crypto market. Several crypto lenders have filed for bankruptcy and this is directly related to the collapse of FTX.