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Genesis is officially preparing to file for bankruptcy this week!

Genesis is officially preparing to file for bankruptcy this week!

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Answer Genesis is officially preparing to file for bankruptcy this week!

The consequences and effects of the crypto market’s decline and the long winter that befell it continue, as crypto companies continue to declare bankruptcy.

Genesis is a subsidiary of the Digital Currency Group (DCG).

Due to the lack of liquidity and the consequences of the past impacts of the collapse of a number of crypto companies, Genesis has entered into private discussions with a variety of creditors.

According to report Recently, the company issued a warning that it may need to file for bankruptcy if it cannot raise more money.

Genesis is preparing for bankruptcy.

Reports indicate that creditors such as the Winklevoss twins would be willing to agree to a waiting period of one to two years under the pre-packaged bankruptcy plan.

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This waiting period will result in the majority of payments after it expires.

In addition, the creditors will receive cash payments in addition to shares in Genesis’s parent company, DCG Group, which is chaired by Barry Silbert.

Gemini co-founder Cameron Winklevoss and Barry Silbert got involved in a Twitter fight with the former accusing Silbert of mixing DCG’s finances and negotiating in bad faith.

In Winklevoss’ most recent open letter, he demanded that the DCG boss step down because he failed to keep his promise to return clients’ funds estimated at $900 million.

Genesis faces mounting stress:

Demonstrating the vulnerability of Genesis’ financial condition, DCG sent a letter to shareholders on January 17, in which the company informed that it would stop paying its quarterly dividend in an effort to preserve capital.

Creditors, Genesis, and DCG have tried to look around a few different ways but haven’t been able to come to an agreement yet.

Kirkland & Ellis and Proskauer Rose both act as advisors to various groups of creditors.

After the failure of the hedge fund Three Arrows Capital, financial pressure began to build on DCG.

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In November, shortly after FTX went bankrupt, Genesis stockpiled some of its cash.

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It also stopped processing withdrawals.

Cryptocurrency exchange Gemini Trust, run by twins Cameron and Tyler Winklevoss, has been affected by these developments as Gemini Earn, a program that allows platform users to earn interest on their coins by lending them through Genesis, has been forced to stop processing redemption requests. .

Genesis is currently preparing the basis for a bankruptcy filing, which may be filed as soon as this week.

We note that despite the start of a partial recovery of the crypto market and the return of Bitcoin to levels of $20,000, it did not stop the bleeding of crypto companies, which continued to collapse until the moment.

Read also:

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