Facing a liquidity crunch and unable to raise needed cash, cryptocurrency firm Genesis Global Capital is preparing to file for bankruptcy, according to multiple media reports.
Genesis Global Capital is the latest in a string of cryptocurrency firms to declare bankruptcy in the wake of the $8 billion U.S. collapse of crypto exchange FTX last November.
Genesis suspended customer withdrawals shortly after the failure of FTX.
Crypto exchange Gemini Trust, which is owned by twin brothers Cameron and Tyler Winklevoss, had enabled users to get yield for lending out their coins through Genesis Global Capital.
Gemini Trust has also stopped client redemptions.
Genesis and Gemini have been engaged in a public battle in recent weeks, blaming each other for their financial problems. The Winklevoss brothers claim that Genesis Global Capital is holding $900 million U.S. of its clients’ funds
