The Danger of a new big “bang” in crypto

Genesis laid off 30% of its staff. It is considering a request for protection from creditors.

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Cryptocurrency lending platform Genesis is considering filing for Article 11 of the US Bankruptcy Code, according to a Wall Street Journal article.

The US newspaper said Genesis is working with investment bank Moelis to review the available options.

According to the WSJ, Genesis also laid off 30% of its staff in a second round of job cuts in less than six months.

“As we continue to face unprecedented industry challenges, Genesis has made the difficult decision to reduce our global headcount. These actions are part of our ongoing efforts to move our business forward,” a Genesis spokesperson said, while the WSJ report stating that the company is even considering bankruptcy.

It was noted that Genesis had laid off 20% of its staff in August.

The company’s lending arm, Genesis Global Capital, froze withdrawals of funds from clients on November 16, citing unprecedented turmoil in the cryptocurrency market after the collapse of FTX, the exchange of fraud accused Sam Bankman-Freed.

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