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Genesis Claims $5.1B in Liabilities in First Day Bankruptcy Filing

Bankrupt crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals last November, according to court documents signed by interim CEO Derar Islim.

In his First Day Motion in the Southern District of New York’s bankruptcy court, Islim provided a breakdown of Genesis’ financial state heading into its restructuring. Genesis became the latest crypto firm caught up in the immediate fallout of FTX’s implosion, with three of its entities – Genesis HoldCo, Genesis Global Capital LLC and Genesis Asia Pacific PTE. LTD – filing for chapter 11 bankruptcy protection late Thursday night.

Those entities were perhaps less impacted by direct losses to FTX and Alameda than by the “run on the bank” that Islim said their collapse sparked. Customers demanded Genesis repay $827 million in loans, forcing its lending units to freeze withdrawals.

“At the same time, Holdco’s corporate parent, Digital Currency Group (DCG), and its various subsidiaries, including DCG International Investments Ltd., were also impacted by the market turmoil and did not have the liquidity to pay back the Company on certain loans, adding pressure to the Debtors’ balance sheets,” Islim said. (DCG is also a parent of CoinDesk.)

Related news：

First Hearing in Genesis Bankruptcy Case Set for Monday

What’s Next for Genesis Creditors? It Depends on What’s in the Bankruptcy Filing

Stellar Foundation Nicked by Genesis Bankruptcy With $13M Claim

Bybit Founder Addresses Concerns Over Firm’s $151M Exposure to Bankrupt Genesis

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