Genesis had originally been set up as an "over the counter" Bitcoin trading desk, enabling the trade of large amounts of crypto. "We lo

Crypto lender Genesis files for bankruptcy

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2023-01-23 16:30:06

Genesis had originally been set up as an "over the counter" Bitcoin trading desk, enabling the trade of large amounts of crypto.

"We look forward to advancing our dialogue with DCG and our creditors' advisers as we seek to implement a path to maximise value and provide the best opportunity for our business to emerge well-positioned for the future," Genesis interim chief executive Derar Islim said in a statement.

It said it was owed $1.2bn (£971m) by Three Arrows, which had been brought down by the collapse of cryptocurrencies Luna and TerraUSD in May.

It is the latest in a series of shocks to the sector, which has been dubbed the "crypto winter" by some analysts, describing the plummet in value of cryptocurrencies.

Genesis is also embroiled in a high-profile dispute with Gemini, owned by the former Olympic rowers Cameron and Tyler Winklevoss, over the fate of $900m in assets that Gemini customers deposited with the lender.