Troubled crypto lending platform – Genesis Global – has started to move towards filing for bankruptcy, according to a report by Bloomberg. The platform could file for bankruptcy as soon as this week. The platform has been on the brink of bankruptcy since November 2022, with the platform trying to raise nearly a billion in funds.
Notably, the report comes days after Digital Currency Group (DCG) – the parent firm of Genesis – suspended quarterly dividends. Moreover, the crypto lending platform has been in a tiff with Gemini – a leading American crypto exchange – since the start of the year. The cause of the friction is the suspension of withdrawals on Genesis, a move made in November as a result of the FTX collapse.
Since then, Gemini’s Earn users have been unable to access their funds. The crypto exchange had nearly 340,000 users participating in its Earn program. The approximate amount locked in Genesis currently stands at $900 million. And, the dead-end conversations have resulted in Cameron Winklevoss – CEO of Gemini – calling for the removal of Barry Silbert from the position of CEO.
The story is still developing.