The cryptocurrency lender is the latest domino to fall after major collapses in the industry last year.
Cryptocurrency Genesis Global Holdco and its two lending subsidiaries - Genesis Global Capital and Genesis Asia Pacific - have filed for bankruptcy protection in New York, it said in a statement Thursday.
Other areas of Genesis's business, such as its derivatives and spot trading, custody and brokerage aren't included in the filing and continue client trading operations, it said.
Contagion Effect
Last year the crypto lender suffered heavy losses due to its exposure to failed crypto hedge fund Three Arrows Capital and to crypto exchange FTX. In response to two major industry collapses, Genesis halted withdrawals, cut jobs and hinted at filing for bankruptcy.
Genesis has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process, it said in the statement.
Genesis' main clients are large professional customers.
