The crisis caused by the crash of the FTX platform and the fall of cryptocurrencies continues to affect the crypto market severely, recently a new entity known as a cryptocurrency firm called Genesis has emerged, which the SEC has branded as illegal for carrying out activities outside of the law, acting immediately to freeze the digital assets contained. If you are interested in crypto trading, consider knowing about candylad cryptocurrency.
This firm has announced that it is in a moment of bankruptcy, where some members have adhered to United States legislation to create a reform strategy for their debts, while its partners dedicated to cash operations and businesses under respective control are still active in their work.
Genesis establishes an exit for all its creditors.
This organization has developed a strategy called a road map to solve this situation, which plans to form a fund to grant the lost assets to its loyal investors and users.
It has begun with the sale of all its resources to obtain money and thus be able to support and honor its commitments legally. It also proposes a general and absolute deal for the company if it does not get support and becomes a capital gain.
If this strategy does not work out, Génesis will convert each of its creditors into a partner, assigning them equal parts and turning them into partners of its firm to thus cover their debts and put their economic operations afloat again.
The firm’s administrative council will closely monitor the restructuring period, despite the worries about the crisis that the digital currency markets are going through.
Additionally, the terrible and harmful accusations that weigh on genesis make user expectations very negative concerning the proposed solutions.
The SEC legally attacks the Genesis firm.
The SEC has exposed legal charges against this firm for having carried out commercial operations outside the legal guidelines established for them through the loan program known as Gemini, which hoarded cryptocurrencies valued at several billion dollars for many investors which amounts to more than thousands.
This firm received many investments and deposits in cryptocurrencies from investors, but at the time of the fall in the value of bitcoin and other cryptocurrencies, significant problems began to break out; other organizations operated similarly to the firm. As a result, they began to take radical measures by canceling all kinds of payments in last year’s last quarter.
After the bankruptcy of the Sam Banckman-Fried (FTX) platform, the Genesis firm declared that it was against the action of its creditors in the Gemini Earn program, who decided to separate their investments from this medium due to the lack of solvency to cover their debts after the variability in the crypto market.
Digital assets for which Genesis must answer are exorbitant.
According to the investigation carried out by the SEC, its document revealed the number of users and assets that are linked to this crypto-active embezzlement, where Genesis is shown as a bankrupt organization, where there are more than one hundred thousand creditors and 10 billion between assets and liabilities, where Gemini is shown as its most substantial creditor with almost 800 million dollars frozen.
This firm, which has capital in crypto assets of more than 150 million dollars, which it estimates to provide a solution to its process of reform and cancellation of debts to comply with the commitments acquired with all its creditors, which at some point had all their trust placed in their successful administrative and business activities.
The cryptocurrency market is today one of the best options for risky investors determined to place their capital in a world where volatility and speculation are alive.
This market, as such, has been very profitable; the falls that have occurred lately are due to poor administrative management by its organization and owners in general, which ends up affecting the entire crypto world globally and causing falls in the values of digital currencies and their free operation.
It is good that the competent authorities investigate and enforce the commitments that these platforms have made to their users, so in this way, these mismanagements could be prevented from continuing to occur in the cryptocurrency markets.
Even if the failed companies establish themselves again and meet the debts incurred, there will always be doubts about cryptocurrencies and why they occur in environments where large amounts of crypto assets are handled.