Genesis Filing for Bankruptcy: What You Need to Know
• 0xd62, a Genesis OTC Wallet, has been making large ETH transfers, one of which was the biggest ETH movement ever.
• Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection after two of 2022’s biggest industry collapses.
• Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, discusses what to expect from Genesis‘ first bankruptcy hearing and whether its trading business is free of liability.
0xd62, a Genesis OTC Wallet, has been making large ETH transfers recently, one of which was the biggest ETH movement ever. This wallet is owned by Digital Currency Group (DCG), the same company as the troubled cryptocurrency lender Genesis Global Capital. Just as the wallet was making its big transfers, the lender’s holding company, Genesis Global Holdco LLC, had filed for Chapter 11 bankruptcy protection due to two of the biggest industry collapses of 2022.
The filing of bankruptcy protection for the holding company has caused many to speculate about the future of the lender’s trading business. To get some answers, Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, was asked to discuss what to expect from Genesis‘ first bankruptcy hearing and whether its trading business is free of liability.
In her comments, Bragança noted that the holding company’s bankruptcy filing puts all of its assets, liabilities, and claims under the jurisdiction of the court. This means that creditors and investors will be able to pursue claims against the holding company’s assets, and that any potential judgments or settlements would be enforced by the court.
However, Bragança also noted that it is possible that the trading business of Genesis Global Capital is free of liability. This is because the trading business is a separate entity from the holding company, and the liabilities and claims of the holding company do not necessarily extend to the trading business. As such, it is possible that the trading business could continue to operate and move money around the blockchain without being affected by the holding company’s bankruptcy.
At the same time, it is important to note that the trading business could still be affected by the bankruptcy proceedings. For example, if the holding company is unable to pay its creditors, the creditors may pursue claims against the assets of the trading business. Additionally, if any judgments or settlements are reached against the holding company, the assets of the trading business could also be affected.
Given these potential risks, it is important for investors and creditors to keep an eye on the developments of the bankruptcy proceedings. In addition, due to the potential risks posed to the trading business, it is important that investors and creditors take extra caution when engaging in any transactions with the trading business.
Overall, 0xd62, the Genesis OTC Wallet, has been making large ETH transfers recently, just as its corporate sibling filed for bankruptcy. While the trading business of Genesis Global Capital may be free of liability, investors and creditors should still be aware of the potential risks posed by the bankruptcy proceedings.