The insolvency of a crypto firm: the consequences of the collapse of FTX
Genesis Global Holdco, a cryptocurrency lender, has declared bankruptcy, making it the newest company to fail following FTX’s sharp decline.
The firm intends to use the case to try and sell assets or raise money, and if that procedure is unsuccessful, creditors will own the reformed corporation, the company stated in a statement.
Use of cash for financing in case of bankruptcy
In the case of bankruptcy, the company claims it will use the $150 million in cash to finance its financing. The chapter 11 filing enables the form to get on with its task of creating a strategy to pay back creditors.
Loans to the corporation are still not being issued, and the bankruptcy court will still be considering claims.
The fall in digital asset values was partially offset by the rise in bitcoin prices for 2023, which are currently up 28% year-over-year.