Genesis Global Capital files for bankruptcy: Three Arrows Capital and FTX are to blame

Genesis Global Capital platform today filed an application insolvency under Chapter 11 of the United States Bankruptcy Code. Applications were submitted on behalf of Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital.

The company presented a list of its debt obligations. Genesis recognizes liabilities to its 100,000 creditors of up to $11 billion. Genesis’ top 50 creditors account for about $3.6 billion. Genesis Global Capital management hopes to recover some of the funds during the restructuring.

In August, following the massive bankruptcy of hedge fund Three Arrows Capital, Genesis announced that it was going to cut its 260-person workforce by 20%. CEO Michael Moreau also said he would be stepping down as chief executive and moving into an advisory position.

Since the bankruptcy of crypto exchange FTX in November, Genesis has struggled to raise capital or strike a deal with creditors. On November 16, Genesis Trading froze withdrawals and issuance of new loans amid “increased requests” from clients due to the collapse of FTX. $175 million belonging to Genesis remained blocked on FTX, which, in turn, led to a massive liquidity crisis.

Rumors about the possible bankruptcy of Genesis circulated persistently in the community, and the media reported on Genesis’s request for emergency funding of $1 billion. Of course, funding could not be found.

In early January, information appeared about even more massive cuts – 30% of the staff lost their positions.

The most interesting and important news on our channel in Telegram

Comments (No)

Leave a Reply