Genesis, a foreign credit company, has filed for partial bankruptcy. The company's current debt is about US $3 billion (£ 2.77 billion).

Genesis is a part of Digital Currency Group (DCG), which consists of more than 200 companies dedicated to cryptocurrency.

One of the important activities of Genesis is to issue loans to encryption companies. As an agent of digital currency for financial enterprises such as financial derivatives and investment management companies, as of the end of the third quarter of last year, its active loan amount was close to US $3 billion. Genesis 1 stopped distributing new loans and stopped customers from withdrawing cash, because he called it "unprecedented turbulence in the sales market". After FTX filed for bankruptcy in November, this unrest spread to the entire industry.

The funds lent to Crypto are mainly based on project investment funds, but in November, the management of Genesis decided to terminate the provision of funds to investors due to new problems. The company looked forward to raising a new fund, but failed because the report had already indicated that bankruptcy was urgent.

Genesis has taken an inevitable step, but it is only partially committed to corporate loan units. Earlier in January, Genesis 1 announced a 30% layoff, and the number of employees fell to 145. The rest, with its trading activities, will not be able to apply for bankruptcy, but will remain active.

Jack Tan, founder of WOO Network,Praised the recent bankruptcy:"Regrettably, the war of Genesis shows that the spread of FTX has not yet ended, which may further alleviate the adoption and recognition of institutionsHowever, I always believe that projects and teams with faith can become stronger. We never want to see the company suffer losses, but from an irrational point of view, the lack of assistance in the field of cryptocurrency is beneficial to the industry. Unlike the endless assistance we see in traditional finance (TradFi), the encryption property industry has a habit of quickly wiping out business processes that should not exist, which may lead to the rapid development of this field.

The pricing of BTC is an excellent indicator value from this long-term perspective. In all these bankruptcies and FUDs, BTC has maintained above 15000 US dollars and continued to show a positive momentum. "

Bitvavo, the largest encryption service platform in Spain, is another company that has recently fallen into a desperate situation. Due to the inability to open the personal credit of 280 million euros of customers stored in the Digital Currency Group, the company recently reported that the Digital Currency Group wants to repay at least 70% of the funds, but other parts are still uncertain.

This Spanish encryption company shows that customers are not easy to notice too much, because Bitvavo service promises to guarantee the outstanding amount of the company. Bitvavo also claimed in a message on the platform that the bankruptcy process of Genesis is is not easy to seriously harm customer funds, because there are still "available assets".