In a new bankruptcy infection in Cryptocurrency sectorGenesis Global and two of its lending companies have filed for bankruptcy protection.
According to the documents submitted by the company to the US Manhattan Federal Court, the number of the company’s creditors exceeded 100,000, and the financial obligations amounted to $11 billion.
Genesis’s bankruptcy comes days following the US Securities and Exchange Commission filed a lawsuit once morest the company over the sale of unregistered securities.
Talal Al-Tabbaa, co-founder of CoinMENA, explained in an interview with Al-Arabiya that the cryptocurrency companies that have gone bankrupt are all financial companies run by people who are prone to making mistakes and taking excessive risks, and they do not operate according to the “blockchain” system.
He added that in the case of FTX platform loans, there was ease in monetizing assets via decentralized platforms, and decentralized financial services are still working without problems despite the pressures of the recent collapse in the sector.
Meanwhile, in an interview Thursday morning on CNBC, JPMorgan Chairman and CEO Jamie Dimon shared his thoughts on crypto, and Bitcoin more specifically.
He said that bitcoin is a “scam,” adding that it differs from the “blockchain” technology, the technological “ledger” system used to transfer information and funds.
Dimon also added that he was not surprised by the collapse of cryptocurrency exchange FTX in November.
