World News | Cryptocurrency meltdown continues as more major crypto firms fail

Tokyo [Japan]Jan. 22 (ANI): U.S.-based cryptocurrency lender Genesis Global Capital has become the latest company to file for bankruptcy protection following the collapse of cryptocurrency exchange operator FTX, NHK World reports.

The company and its subsidiaries filed for Chapter 11 bankruptcy protection in a U.S. court on Thursday.

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According to NHK World, company officials blamed the failure on the illiquid cryptocurrency market caused by the FTX crash last November, as well as other unusual developments in the industry in recent months.

According to the documents presented by the court, Genesis Capital owes 1 to 10 billion US dollars in debt, with more than 100,000 creditors.

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Cryptocurrency lender Blockfi also filed for bankruptcy protection in November.

Leading cryptocurrency exchange operator Coinbase suspended its operations in Japan this month, citing a poor business environment, NHK World reported.

“Genesis has taken strategic actions to achieve a global resolution to maximize value for all customers and stakeholders and strengthen its business going forward,” the company said in a statement, Al Jazeera reported.

Genesis added that its subsidiaries involved in derivatives, spot trading and custody, as well as its brokerage arm, Genesis Global Trading, were not included in the filing and will continue to operate.

Earlier, in November, Genesis halted customer withdrawals following the collapse of FTX, even negotiating with creditors and trying to secure new funds.

The crypto bank laid off 30 percent of its workforce earlier this month, according to the Wall Street Journal.

Genesis owner DCG said in a statement that neither DCG nor its employees, including Genesis board members, were involved in the decision to file for bankruptcy, Al Jazeera reported.

“Genesis has its own independent management team, legal and financial advisors, and has appointed a special committee of independent directors to oversee the restructuring of Genesis Capital,” the statement said. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)