• Genesis Global Capital, a crypto lender, recently filed for Chapter 11 bankruptcy.
• The company’s lawyers have informed a bankruptcy court in New York of working „around the clock“ to settle with creditors.
• Lawyers from the Cleary Gottleib law firm representing Genesis in the bankruptcy process are expecting to settle by the end of the week.
Genesis Global Capital, one of the leading cryptocurrency lenders, has recently filed for Chapter 11 bankruptcy. The filing was made to the US Bankruptcy Court in the Southern District of New York. The filing included two of the lender’s subsidiaries, Genesis Asia Pacific and Genesis Global Capital.
The filing came two months after Genesis halted withdrawals due to its exposure to FTX, an exchange that had gone bankrupt. Since then, the company’s lawyers have been working with the representatives of creditors and the US Trustee Office to reach a consensus. As informed to the bankruptcy court judge, the lawyers have been working “around the clock” to settle with the creditors.
The lawyers from the Cleary Gottleib law firm representing Genesis in the bankruptcy process have informed the court that they are aiming to settle the issue by the end of the week. Attorney Sean O’Neal explained that the lender had come up with a timeline and an approach to assist in getting through the bankruptcy case. O’Neal also pointed out that the company did not want prolonged litigation that would impact the value available to the creditors.
Another attorney representing Genesis, Jane VanLare, said the firm was also exploring a potential sale to raise funds. The attorneys are hopeful that the process will be resolved soon and the creditors will be able to get the value they deserve. They are currently in the process of putting together a plan of action that will ensure a swift resolution of the bankruptcy case.
The crypto bear market has taken a toll on many industry players, and Genesis Global Capital is no exception. The lawyers representing the firm are optimistic that the bankruptcy process will be resolved soon and that the creditors will receive the value they deserve.