Crypto loan genesis strokes personnel and consider bankruptcy: WSJ
Crypto loan genesis strokes personnel and consider bankruptcy: WSJ
According to a report by the WSJ of January 5, in which “people familiar with the matter” are quoted, Genesis is considering an application for bankruptcy and has released around 30 % of its employees.
The layoffs concerned several departments that the company left with 145 remaining employees. Genesis has tapped the investment bank and the financial advisory company Moelis & Co.
A spokesman for the company told the sales point:
"While we continue to cope with unprecedented challenges in the industry, Genesis has made the difficult decision to reduce our number of employees worldwide. These measures are part of our continuous efforts to advance our business."
genesis suffer deeper
The crypto broker company was in the spotlight this week after his CEO, Barry Silbert, was criticized by Gemini co-founder Cameron Winklevoss. Gemini borrowed genesis and wants to have them back.
The stock exchange led by Winklevii stopped the withdrawals in mid-November after the collapse of the FTX, as it came into contact with the now dissolved crypto giant and his venture arm Alameda. It also awarded the now bankrupt hedge fund Arrows Capital (3AC) $ 2.4 billion.
Genesis also paused the lending and repayment. As a result, Gemini had bound $ 900 million in customer funds with his return partner Genesis.
In November, Genesis tried to raise rescue funds of $ 1 billion and threatened bankruptcy if this did not succeed. This premise is now much closer to reality.
Interims CEO Derar Islim said that the company "needs more time to solve the financial crisis that brides itself in his lending business and have made progress in the cost of cost in its business areas."
The parent company of Genesis, the Digital Currency Group (DCG), is also affected, as well as Grayscale, which also falls below its roof. DCG has a considerable participation in Grayscales Bitcoin Trust (GBTC), which it may have to liquidate.outlook on the cryptom market
The markets spent another day flat, with a total capitalization of around $ 853 billion. A genesis insolvency and liquidation of the GBTC stocks of DCG will probably have another leg plunges down.
The absolute cycle low has not yet been reached, but consolidation continues for the time being.
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