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Genesis files for bankruptcy

It's official: after a few uncertain weeks, Genesis, the crypto clearing service, files for bankruptcy.

By Mike Hesp
• 2 min read
Genesis files for bankruptcy

It's official: after a few uncertain weeks, Genesis files for bankruptcy.

Genesis filed for bankruptcy on January 19 in the Southern District of New York, officially declaring insolvency. In a press release, the company says it is in talks with creditors and the parent company Digital Currency Group (DCG) to find the most effective way to preserve assets and move the company forward.

Derar Islim, interim CEO of the lending platform, said: "A court-supervised restructuring is the most effective way to preserve assets and achieve the best possible outcome for all Genesis stakeholders."

Gemini cofounder Cameron Winklevoss welcomed the developments, saying it would be the first step toward returning customer funds. He had called for DCG chief Barry Silbert to step down amid the customer-funds dispute.

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Friday, January 13, the U.S. Securities and Exchange Commission (SEC) charged both Genesis and Gemini with unregistered securities trading.

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