Genesis, a crypto lender and a subsidiary of Barry Silbert’s Digital Currency Group, filed for Chapter 11 bankruptcy protection in Manhattan federal court late Thursday night.
This is the latest blow to the industry, following the collapse of FTX and a setback for a business that was once at the center of Digital Currency Group. The company listed over 100,000 creditors in a “mega” bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars, according to bankruptcy documents.
The filing follows months of speculation and just days after the Securities and Exchange Commission filed a lawsuit against Genesis and its former partner Gemini over the unregistered offering and sale of securities. The bankruptcy puts Genesis alongside other fallen crypto exchanges including BlockFi, FTX, Celsius, and Voyager.