The lending unit of crypto firm Genesis, filed for U.S. bankruptcy protection from creditors, unable to withstand the dramatic market downturn that has affected other crypto giants such as FTX and BlockFi. 

What Happened: Genesis Global Capital, one of the largest crypto lenders, stunned its customers on Nov. 16 when it froze customer redemptions after FTX declared bankruptcy

1/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.

— Cameron Winklevoss (@cameron) January 20, 2023

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Cameron Winklevoss stated that, despite their tireless efforts to secure an agreeable resolution, Barry Silbert and Digital Currency Group (DCG) – the parent organization of Genesis – continue to deny creditors a reasonable agreement.

He reinforced that although seeking the protection of the bankruptcy court puts the company under judicial oversight, with the necessary processes of discovery generation, it does not absolve any individuals or entities from legal accountability.

“We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices,” Winkelovss added.

Winklevosses noted that unless Barry and DCG make a fair and reasonable offer to creditors, they will be filing a lawsuit against Barry and DCG imminently.

Genesis' lending unit reported having between $1 billion and $10 billion in assets and liabilities in its filings with the U.S. Bankruptcy Court. 

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