Genesis
“Can a crypto lending and prime brokerage platform survive when its institutional counterparties collapse simultaneously?”
HQNew York, NY, USA
IndustryFintech / Crypto
The story
Genesis operated as a major crypto lending and trading platform under parent company Digital Currency Group. The firm's lending book became severely impaired in mid-2022 due to losses from Three Arrows Capital's collapse, and was further destabilised by the FTX implosion in November 2022, leading to a suspension of withdrawals. Genesis filed for Chapter 11 bankruptcy in early 2023. Its embedded finance footprint — primarily crypto lending and FX prime brokerage — was relevant during its operating years but became largely moot post-bankruptcy.
Last 12 months
Product timeline
2022
Genesis halted withdrawals and new loans following the collapse of FTX and the related crypto market contagion, citing $175M locked on FTX and exposure to Three Arrows Capital.· pivot
2023
Genesis filed for bankruptcy protection in the Southern District of New York (Case 23-10063).· pivot
The stack
Accounting gap: none