Genesis Files for Bankruptcy. It’s Not as Bad for Bitcoin as It Could Be.

Crypto lender


Genesis


has filed for bankruptcy, marking the latest in a string of business failures in the wake of a crash in digital asset prices over the past year.

Genesis, the trading and lending arm of crypto conglomerate Digital Currency Group, and two of its lending subsidiaries have filed for Chapter 11 bankruptcy protection in New York, the group said late Thursday. The company said it has proposed a road map to exit Chapter 11 through the creation of a trust that will distribute assets to creditors—potentially through a sale, capital raising, or equitization transaction that would allow it to come under new ownership.