Amid a legal battle with the SEC, cryptocurrency startup Genesis is considering filing for Chapter 11 bankruptcy. The firm has been involved in a dispute with the Securities and Exchange Commission, which charged it last week with marketing unregistered securities.
The conflict between Genesis and Gemini has been a major headline in 2023, culminating with last week’s allegations. Following the circumstances of the past month, Genesis appears to be obliged to seek Chapter 11 protection.
This month, the platform has been a consistent narrative in the cryptocurrency world. Following a 30% layoff in early January and its well-publicized struggle with the SEC and Gemini. Genesis, a Bitcoin lender, has now been forced to file for Chapter 11 bankruptcy.
Gemini has publicly attacked Genesis, which is owned by the Digital Currency Group and Barry Silbert. Publicly declaring the cryptocurrency firm’s accounting irregularities and deceptive actions concerning its former collaborator. All of this followed the two platforms’ collaboration in February 2021, which resulted in the SEC’s allegations last week.
Gary Gensler and the regulatory body both charged both platforms with selling unregistered securities. As a result, it is also tied to the collaboratively designed Gemini Earn program.
The cryptocurrency startup is now said to be filing for Chapter 11 bankruptcy this week. Furthermore, Bloomberg claims that the company has been in “confidential negotiations with various creditor groups amid liquidity crunch.”
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