Genesis Global Capital
BankruptLending · born 2018 · ✝ 2023
The crypto lender that froze withdrawals after contagion hit its book.
Genesis was a major institutional crypto lender owned by Digital Currency Group. It froze withdrawals after FTX's collapse and filed for Chapter 11 bankruptcy in early 2023.
- Peak
- Billions in active loans
- Cause
- Bankrupt
- Year of death
- 2023
☠️ Cause of death
Exposure to Three Arrows Capital and the FTX collapse triggered a liquidity crisis; Genesis halted redemptions and filed for bankruptcy owing creditors billions.
📓 Lessons left behind
- —Concentrated counterparty exposure spreads contagion fast.
- —Institutional lenders are not immune to bank-run dynamics.
- —Intercompany lending can entangle an entire corporate group.
🌱 The idea that survived
Overcollateralized lending
On-chain lending protocols that require collateral and liquidate automatically avoid the trust gaps that sank Genesis.
#lending#contagion#bankruptcy