Seoul, South Korea: One of the largest cryptocurrency lenders, Genesis, has declared bankruptcy in the US, making it the most recent victim of the crypto market crash. Genesis Global Capital filed for Chapter 11 bankruptcy protection in New York. According to a court filing, the lenders’ assets and liabilities are each estimated to be between $1 billion and $10 billion.

Parent group Genesis Global Holdco and lending unit Genesis Asia Pacific also filed for bankruptcy protection. “Genesis has taken strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future,” the company cited in a statement.

Genesis stated that its brokerage division Genesis Global Trading, as well as its companies engaged in the derivatives, spot trading, and custody industries, were not included in the filing and will continue to operate. Following the shocking collapse of FTX, Genesis stopped customer withdrawals in November 2022. Since then, it has been in talks with creditors and working to raise new capital.

After the US Securities and Exchange Commission (SEC) accused the lender and cryptocurrency exchange Gemini of selling unregistered securities in connection with a high-yield product called Earn on 12th January 2023, Genesis filed for bankruptcy at a time when the company was already facing increased regulatory scrutiny.

The former Olympic rowers Mr. Cameron and Mr. Tyler Winklevoss’ Gemini is in a public battle with Genesis over the fate of $900 million in assets that Gemini clients deposited with the lender.

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