Companies & Deals
Share
Genesis, a lender for digital currencies, has filed for bankruptcy protection under Chapter 11 in the Southern District of New York.
The company has listed its liabilities and assets both in the range of $1 billion to $10 billion, as per its January 19 filing. As a matter of fact, it was reported earlier that the firm was looking at filing for bankruptcy in case it couldn't raise enough funds to overcome its current financial difficulties.
In a press release, Genesis stated that it had been consulting with its advisors, creditors, and parent company Digital Currency Group (DCG) to find the best way to protect its assets and keep the business running.
Genesis is planning to explore a "dual track process" as part of its Chapter 11 bankruptcy plan, which could involve a sale, raising capital, or a transaction that would result in the company being owned by new investors.
As per the company, the derivatives, spot trading, broker-dealer and custody businesses will not be affected by the bankruptcy proceedings and will continue to function.
Additionally, Genesis has stated that it has over $150 million in cash on hand, which it believes will be sufficient to support its ongoing operations and the restructuring process.
Disclaimer of Warranty
The information provided in this article is for general informational purposes only. We make no warranties about the completeness, reliability, and accuracy of this information. Read full disclaimer
The restructuring process will be overseen by an "independent special committee" of the company's board of directors, and is intended to provide the best outcome for Genesis clients and Gemini Earn users.
Cameron Winklevoss, one of the co-founders of Gemini, stated on Twitter that the bankruptcy filing is an important step towards allowing Gemini users to retrieve their assets. However, he also accused Digital Currency Group (DCG) and its CEO, Barry Silbert, of refusing to offer a fair deal to creditors and warned that he would file a lawsuit unless they change their approach.
It is worth noting that The United States Securities and Exchange Commission (SEC) has brought charges against both Genesis and Gemini, accusing them of providing unregistered securities through the Earn program.
There are also growing concerns that DCG may have to sell off a portion of its $500 million venture capital portfolio to cover Genesis' debts.
On Jan. 17, DCG suspended dividend payments as a measure to "reduce operating expenses and preserve liquidity."
Additionally, it is also being rumored that DCG is considering selling CoinDesk, its crypto news outlet, which could bring in $200 million.
Related Articles

Companies & Deals
Stripe’s Reported PayPal Interest: A Signal of Payments Consolidation With Stablecoins in Focus?

Companies & Deals
Riot Platforms Faces Investor Pressure to Accelerate AI Infrastructure Expansion

Companies & Deals
German Financial Innovation: Stuttgart Stock Exchange Merges with Tradias in €500M Deal
Editor's Picks

UAE Stablecoins: Why They Are Built to Travel, Not Stay Local
Walid Abou Zaki
Feb 28, 2026
8 min

The Central Bank of the UAE Clearing the Noise Around Article 62
Walid Abou Zaki
Feb 25, 2026
5 min

Europe’s Crypto Purge: Did Lithuania Just Kick Out Innovation — and is the UAE the Beneficiary?
Salma Naueihed
Feb 18, 2026
7 min
Read More Articles
In the Same Space

Bitcoin Miners Face Price Risk from Iran Conflict Rather Than Energy Costs
Chantal Assi
Mar 13, 2026
3 min

Kazakhstan Pushes Forward Crypto Industry Growth with Presidential Directive
Chantal Assi
Mar 13, 2026
3 min

World Liberty Financial Offers $5M “Super Node” Access in Trump Crypto Venture
Chantal Assi
Mar 13, 2026
3 min

Ethereum’s Future: "Buterin" Highlights Three Core Roles
Chantal Assi
Mar 13, 2026
3 min