• Genesis Global Capital has recently filed for Chapter 11 bankruptcy.
• The lawyers representing Genesis have informed the bankruptcy court of working to settle with creditors.
• The lawyers hope to reach a consensus by the end of the week and are also exploring a potential sale to raise funds.
Genesis Global Capital has recently become the latest victim of the crypto bear market, filing for Chapter 11 bankruptcy. The lending unit of Genesis halted withdrawals on November 18 of last year due to exposure to FTX. The exchange filed for bankruptcy shortly afterwards, leaving Genesis in a difficult situation.
In order to recover from the bankruptcy, Genesis has been working with the representatives of creditors and the US Trustee Office for the last two months. The lawyers from the Cleary Gottleib law firm, which is representing Genesis in the bankruptcy proceedings, informed the bankruptcy court judge that they plan to settle by the end of the week. The lawyers have stated that they have been working around the clock to come to a consensus that would be beneficial to all parties involved.
The lawyers have also mentioned that they are exploring a potential sale to raise funds. Attorney Sean O’Neal noted that Genesis had come up with a timeline and an approach to assist the lender in getting through the bankruptcy case. O’Neal added that the company did not want prolonged litigation that would impact the value available to the creditors.
The situation is still uncertain and a resolution has yet to be reached. However, with the lawyers working diligently to reach a consensus, it is possible that the bankruptcy process will be resolved in the near future. It remains to be seen how the situation will be handled and what the outcome will be. In the meantime, it is important for all parties involved to come to an agreement that is beneficial to everyone.