Genesis Global Capital, a major cryptocurrency lender, is reportedly planning to file for bankruptcy.
According to Bloomberg, the company could file for bankruptcy as soon as this week. The report notes that parent company Digital Currency Group (DCG) has been in negotiations with various creditor groups who have been advised by Kirkland & Ellis and Proskauer Rose. Several proposals are said to have been exchanged but the parties have failed to come to any agreement.
The news comes after weeks of speculation after the company froze customer redemptions in the wake of crypto exchange FTX’s crash in November.
While the news has not been confirmed by Genesis or DCG, DCG told shareholders on Wednesday that it is suspending quarterly dividends in an effort to conserve cash.
Genesis could become the latest casualty following the spectacular collapse of FTX in November. Crypto lender BlockFi and crypto mining company Core Scientific Inc have both filed for bankruptcy since November.
Elsewhere, Genesis is currently in a dispute with the Cameron and Tyler Winklevoss-founded Gemini. Gemini says Genesis owes it $900 million in connection with a deal the pair struck over Gemini’s crypto lending product Earn.
Both companies last week were charged by the U.S. Securities and Exchange Commission with illegally selling securities to investors through their crypto lending programme.
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