David - Cryptocurrency Enthusiast
Crypto lender Genesis Global has filed for Chapter 11 bankruptcy protection in the Southern District of New York, becoming the latest firm to be impacted by the collapse of FTX. The firm has estimated liabilities of $1 billion to $10 billion and assets in the same range, according to a Jan. 19 filing. This is a significant development in the crypto industry and serves as a reminder of the potential risks associated with cryptocurrency investment.
As a crypto lender, Genesis offered a range of products and services to its clients, including crypto asset management, Bitcoin investing. However, the company has been struggling with liquidity issues and had been considering filing for bankruptcy protection if it was unable to raise capital. In a Jan. 19 press release, Genesis stated that it had been engaged in discussions with its advisors, creditors, and corporate parent Digital Currency Group (DCG) to evaluate the most effective path to preserve assets and move the business forward.
Genesis's broker-dealer, custody, spot trading, and derivatives businesses are not involved in the Chapter 11 proceedings and will keep operating, according to the company. Additionally, it stated that it believed it had more than $150 million in the bank.
In November 2022, the company halted withdrawals from its platform due to market turmoil brought on by the demise of FTX, which influenced customers of Gemini Earn, a yield-bearing service for customers of the Genesis-managed Gemini cryptocurrency exchange.
In the past, there have been other similar cases, like QuadrigaCX, a Canadian crypto exchange that filed for bankruptcy in 2019 after the death of its founder, who was the only one who had access to private keys of the exchange cold wallets. This highlights the importance of choosing a reputable cryptocurrency exchange.
The crypto market is a dynamic and rapidly growing industry, with many options for buying and selling Bitcoin. However, it's important for investors to be aware of the risks and to do their due diligence when choosing a platform for crypto market investment. It's crucial to invest only what you can afford to lose and to diversify your investment portfolio.
Despite the recent developments, the future looks bright for the crypto market. With more and more countries announcing their plans to regulate the crypto industry, it's clear that cryptocurrencies are here to stay. With the right approach, investors can still profit from buying and selling digital currencies. Investing in cryptocurrency can be a great way to diversify your investment portfolio, but it's essential to do your research and choose a reputable platform to trade on.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards