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Crypto lender Genesis files for bankruptcy

Crypto lender Genesis files for bankruptcy

Crypto lender Genesis has filed for bankruptcy.

The firm had already been charged by the Security and Exchange Commission for illegally selling cryptocurrency.

The looming failure of Genesis - which makes up part of the Digital Currency Group, a 200 crypto brand-strong conglomerate led by CEO Barry Silbert - is connected to the downfall of FTX, which declared bankruptcy in November amid allegations of fraud and other charges.

Derar Islim, the acting CEO said: "We look forward to advancing our dialogue with DCG and our creditors' advisers as we seek to implement a path to maximise value and provide the best opportunity for our business to emerge well-positioned for the future,"

The fund has been established as an “over the counter” Bitcoin platform - which allowed vast quantities of trading - but in early January, they outlined plans to let go of 30 per cent of its staff.

Recently, Genesis was hit with allegations from Cameron and Tyler Winklevoss - the ex Olympic rowers who were involved with the start of Facebook - of foul play amid concerns about the $900 million invested assets deposited by customers of their own crypto venture, Gemini.

The Gemini Earn scheme - which promised returns of up to 7.4 per - has blocked 340,000 investors from accessing their money since late November.

Reacting the bankruptcy, Cameron - who along with his brother was portrayed by Armie Hammer in 'The Social Network’ movie - tweeted: “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.”

“Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.”

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