• Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York.
• Even as Genesis‘ crypto-lending business entered bankruptcy court protection, the company’s trading arm, which remained out of Chapter 11, is still moving money around on blockchains – a sign the business was still running at least somewhat as normal.
• About $125 million was sent to exchanges in the run-up to Genesis‘ lending division filing for Chapter 11 protection. More was moved the next day.
Genesis Global Holdco LLC, the holding company of the troubled cryptocurrency lender Genesis Global Capital, recently filed for Chapter 11 bankruptcy protection in New York. This filing was made after the company was hit hard by two of the biggest industry collapses of 2022. Despite this, CoinDesk News Desk Managing Editor Danny Nelson reports that the company’s trading arm, which remained out of Chapter 11, is still moving money around on blockchains – a sign that the business is still running at least somewhat normally.
Before the filing for Chapter 11 protection, around $125 million was sent to exchanges. Even more money was moved the next day, with the Genesis over-the-counter (OTC) trading desk sending funds to multiple wallets, including some owned by exchanges such as Huobi and Coinbase. This suggests that the trading arm is still operating, indicating that the business could still be relatively normal despite the bankruptcy filing.
The news of the trading arm’s activity comes at a time when the crypto industry is facing a period of uncertainty due to the recent tumult. While the bankruptcy filing of Genesis’ lending division is a sign of the industry’s fragility, the fact that the trading arm is still active is a sign of relative normality. It’s a reminder that despite the current state of the industry, there are still some aspects of the market that remain stable and functioning.
This stability is important for the crypto industry, as it helps to bring reassurance to investors and traders that the market can still function even in the face of uncertainty. As the industry continues to grow, this stability will be increasingly important, and it’s reassuring that the trading arm of Genesis is still active.
Although the exact implications of the trading arm’s activity remain to be seen, it’s clear that the crypto industry is still functioning, even in the face of turmoil. This is a sign of relative normality and could help to bring some much needed stability to the market.