Gemini Founder said Genesis’ bankruptcy declaration does not insulate DCG and Barry Silbert from facing legal actions, should they fail to offer reasonable solutions to repaying creditors.

Genesis has a roadmap to exit bankruptcy and hopes to do so as "quickly and efficiently as possible," interim CEO Derar Islim told clients this morning in a letter obtained by The Block. 

Crypto markets saw minimal volatility over the past 24 hours despite Digital Currency Group (DCG) subsidiary company Genesis Global Capital filing for Chapter 11 bankruptcy on Jan. 19.

Genesis Trading’s lending business Genesis Global Capital filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Amid the bankruptcy filing, Genesis Trading is actively transferring crypto assets to other crypto exchanges and wallets.

Genesis Global, which filed for bankruptcy protection in New York late Thursday, owes more than $3.6 billion to its top creditors.

Some two months after halting customer withdrawals, Genesis has become the next crypto market player to head for bankruptcy.

Genesis Global Capital creditors are negotiating a prepackaged bankruptcy plan with the firm, two sources familiar with the talks told The Block. 

Liquidation occurs when the margin balance falls below the maintenance margin. The liquidation price is the point at which a trader’s position starts entering liquidation

BlockFi said publicly that it will file a financial breakdown soon following progress in its Jan. 9 bankruptcy hearing.

Genesis Global Markets is working with the investment bank Moelis & Company on potential solutions to its financial woes and is considering chapter 11 bankruptcy. Earlier in the same day, the also stated it is firing 30% of its employees in the second major round of layoffs within a year.