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GM Guys and Gals,

The Web3 Space has been quite well known for giant companies becoming bankrupt in a fraction of a second ⏰. Digital Currency brokerage Genesis announced that if filed for Bankruptcy, Here's everything you need to know about it [👇🏻]

Broke Af 😩 [LAG GAYE!]

Digital currency brokerage Genesis announced that it filed for Chapter 11 bankruptcy late Thursday.

"An in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” said Genesis' interim CEO Derar Islim.

The company, which is a subsidiary of Digital Currency Group (DCG), says that it has more than $150 million in cash on hand, which it describes as "ample liquidity" to fund operations during the restructuring process.

The entities that filed the Chapter 11 petitions in the Southern District of New York are Genesis Global—a holding company—and lending-focused subsidiaries Genesis Global Capital and Genesis Asia Pacific.

The filings come after widespread reports of Genesis' impending bankruptcy, and a week after the SEC charged the firm and crypto exchange Gemini with violating securities law. Genesis laid off 30% of its employees at the beginning of the year.

Genesis launched the first over-the-counter Bitcoin trading desk in 2013, going on to become one of the industry's largest players. More recently, however, headlines associated with the firm involved its public battle with the crypto exchange Gemini.

Gemini and Genesis had partnered on the Gemini Earn program, and Gemini says Gemini is withholding more than $900 million in customer funds. Gemini Earn was finally terminated on January 11.

That's it for the day, Web3Shala 👋

To the Moon 🪐LFG 🚀