Cryptocurrency OTC platform Genesis Trading is preparing to begin bankruptcy proceedings. The media expect that the company will file a corresponding application by the end of this week.
Bloomberg, citing its own sources, said Genesis’s Form 11 “Protection against Creditor Claims Pending Restructuring” application would be a logical step after the termination of payments to customers and large-scale layoffs.
Also appeared in The Block yesterday publication that the top managers of the company are negotiating possible bankruptcy.
In August, Genesis announced that it was going to cut the staff, which consisted of 260 people, 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. 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.
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