Crypto platform Genesis lays off staff, considers bankruptcy

Crypto lending platform Genesis is not doing well. Following the demise of crypto exchange ftx Genesis got into serious financial trouble. The company would still have many hundreds of millions of dollars in debt to various other companies, such as Gemini. Genesis is a subsidiary of Digital Currency group (DCG), and this company would still $280 million owe to Bitvavo.

Genesis lays off staff

Today it was announced that Genesis has made significant headcount cuts. It would reportedly be another such 30% of the personnel have fired, having already dismissed 20% earlier this year. This obviously does not happen at a company that is financially healthy. A Genesis spokesperson had this to say:

“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our global workforce. These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work towards the best long-term outcome for Genesis’ business, customers and employees.”

Will Genesis even go bankrupt?

Today it came Financial Daily adding one more shovel to this already painful news. They state that Genesis is currently even considering filing for bankruptcy. Insiders would have told the Wall Street Journal this. Of course, these are still rumors, but the situation does not look positive.

Yesterday Genesis also indicated that they need more time to solve the debt crisis.

A bankruptcy at Genesis could also cause problems for crypto exchange Gemini. After all, Gemini would still $900 million get from Genesis. This can also cause further problems for the Dutch Bitvavo.

Bitvavo responds

Bitvavo still owes $280 million from DCG, the parent company of Genesis. Should Genesis go bankrupt, it seems likely Bitvavo getting their money back from DCG has become smaller again. According to Bitvavo However, a possible bankruptcy of Genesis does not change the matter at all, the exchange states in a blog post today. The Dutch exchange maintains that negotiations with DCG are continuing and that customers of the platform have nothing to worry about.

“As indicated earlier, the current situation with regard to DCG has no impact on Bitvavo’s customers, its platform and its services. Bitvavo guarantees the outstanding amount and has thus taken over the risk from its customers.”