The largest lender in the cryptocurrency market has declared bankruptcy, causing the market to decline

 

The largest lender in the cryptocurrency market has declared bankruptcy, causing the market to decline
The largest lender in the cryptocurrency market has declared bankruptcy, causing the market to decline


The largest lender in the cryptocurrency market has declared bankruptcy, causing the market to decline


Genesis, the biggest crypto lender, could be filing for bankruptcy due to recent economic turmoil.

According to a reliable source who spoke with Bloomberg, the company is expected to file for bankruptcy this week.

After hearing the news, the price of Bitcoin dropped 2% and settled at $20,933 per coin.

The US Securities and Exchange Commission recently announced that they are investigating Genesis and Gemini for selling securities without a license.

The aftermath of the FTX crisis has been difficult for cryptocurrency companies, even though cryptocurrencies have improved recently. Major firms, such as Coinbase Global Inc (NASDAQ: COIN), have had to reduce staff numbers and make redundancies.


Since the start of the month, there has been negative news related to Genesis.

On the fifth of this month, Genesis, a company affected by the collapse of FTX (one of its biggest customers), announced that it would lay off 30% of its workforce in an effort to avoid bankruptcy. Its parent company Digital Group and its CEO Barry Silbert have been criticized by many investors for delaying their reaction to FTX's failure.


Risks Ahead in the Market

If Gray Scale Trust fails, it could cause a big drop in the value of Bitcoin, according to Scott Melkrem.


The response of the market to something.

At 7:07pm GMT, Ethereum dropped to $1,540 - a 3.32% decrease. Binance Coin declined by 3.20% to $293 and Polygon had the greatest loss of 5.41%, reaching 0.965. Cardano sank 4.67% to $0.3365.

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