Last week, Genesis Global filed a petition in the Southern District of New York Bankruptcy Court. This said he would like to be placed under the protection of bankruptcy law. Subsequently, cryptocurrency lender Genesis had to provide documents revealing the names of its creditors. Among the latter, two US government agencies were included but have since been delisted from the list.
US regulators linked to bankrupt exchange
Digital Currency Group’s Genesis Global joined the list of bankrupt crypto companies last week. In this context, the cryptocurrency lender filed a court document on Monday that mentioned the names of its creditors. Between these, there are several US government agencies such as the Internal Revenue Service (IRS) and the Securities and Exchange Commission. There is also the United States Attorney’s Office for the Southern District of New York. The Block reported this information with a Twitter post this January 24, 2023.
It should be noted that the IRS is the agency of the federal government of the United States which deals with the collection of contributions. The Internal Revenue Service is responsible for collecting income tax and various other taxes. As for the Securities and Exchange Commission, it is the federal body responsible for regulating the financial markets of the United States.
For one reason or another, several names in this list of Genesis creditors have been removed. Also, there is a law firm and a non-profit organization on this list. They are Norton Rose Fulbright US LLP and Stellar Development Foundation. The latter is the company that developed the Stellar blockchain.
A contentious relationship between SEC and Genesis
Genesis Global Capital LLC is among the companies that the SEC has attacked in recent times. Indeed, the regulator charged him on Jan. 12 with committing embezzlement with Gemini Trust Company LLC.
The two crypto companies allegedly offered and sold securities without having a prior license. This happened with the Gemini Earn loan program.
Affected by the collapse of Three Arrows Capital and the fall of FTX, Genesis Global Capital LLC has filed for bankruptcy. Crypto lender DCG, however, indicated that it would be able to hold its own during the restructuring process. In fact, he claimed to have sufficient cash, over $150 million in cash. This sum should enable it to sustain its business activities throughout the restructuring process.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.