In a Jan. 20 declaration, Genesis Capital’s parent business, Digital Currency Group (DCG), rejectedinvolvement in Genesis’ bankruptcy filing. According to DCG, an unique committee of independent directors advised and decided to apply for Chapter 11 personal bankruptcy protection.

Filing for Chapter 11 will enable Genesis to seek the reorganization of debts, properties and other service activities. The company approximated liabilities of $1 billion to $10 billion, together with possessions in the exact same range. DCG noted in the declaration:

“Genesis has its own independent management team, legal counsel, and financial consultants, and designated a special committee of independent directors, who supervise of the Genesis Capital restructuring, and who suggested and decided that Genesis Capital file chapter 11. Neither DCG nor any of its workers, consisting of those who sit on the Genesis board of directors, were associated with the choice to file for insolvency.”

Only Genesis’ lending entities– Genesis Global Holdco, Genesis Global Capital and Genesis Asia Pacific, collectively known as Genesis Capital– have applied for personal bankruptcy defense. Genesis Global Trading and Genesis’ area and derivatives trading entity will remain operational.DCG Statement on Genesis Capital Chapter 11 Bankruptcy Filing

: https://t.co/6SsWj4zo3R pic.twitter.com/j9e8R3mMZv!.?.!— Digital Currency Group(@DCGco) January 20, 2023 Related: Crypto Biz: DCG’s’ carefully crafted

campaign of lies’? DCG stated it intends to continue to operate as normal,

together with its other subsidiaries, consisting of Grayscale Investments, Foundry Digital, Lino Group Holdings, CoinDesk and TradeBlock Corporation. In a letter sent to shareholders on

Jan. 17, DCG validated it owes”$526 million due in May 2023 and$1.1 billion under a promissory note due in June 2032. “The business kept in mind that it plans to attend to obligations to Genesis Capital in the course of restructuring. The letter also announced a halt to quarterly dividend payments to maintain liquidity, Pandoraland reported. Genesis’issues emerged after the withdrawal stop in November, which it blamed on the”unmatched market chaos”that followed the collapse of FTX. The business later on revealed it had$175 million stuck in an FTX account. The withdrawal stop impacted customers’ of Gemini and prompted calls for DCG’s board to eliminate Barry Silbert as CEO.