• Genesis Global Trading filed for Chapter 11 bankruptcy protection in New York.
• The crypto community had various reactions to the news, from believing no one will be held accountable to criticizing the entire crypto lending concept.
• Gemini co-founder Cameron Winklevoss claimed the bankruptcy filing was “good news” and a step toward Gemini users getting their money back.
The blockchain-centered crypto firm Genesis Global Trading has recently filed for Chapter 11 bankruptcy protection in New York, prompting a wide range of reactions within the crypto community. The news has come as another addition to the seemingly never-ending bankruptcy spree within the crypto space, leading some to believe that the only winners in all of these events will be the bankruptcy lawyers.
One crypto analyst illustrated how crypto firms were potentially connected throughout all the recent bankruptcies. On Twitter, they wrote “Genesis just filed for chapter 11. Bankruptcy lawyers making bank on crypto bankruptcies.” This statement was met with various responses from community members. Some agreed that no one will be held accountable for the losses and that customer funds will be used to cover the legal fees for the lawyers. Others labeled the entire crypto lending concept as “stupid”, while some went as far as to say that the crypto sphere is nothing more than a “giant scam”.
Gemini co-founder Cameron Winklevoss, on the other hand, had a different opinion on the matter. He took to Twitter to claim that the filing was “good news” and a step toward Gemini users getting their money back. However, this statement was quickly called out by a user who said that Gemini was “also as guilty” for not doing its due diligence on Genesis’ way of doing business before partnering with them.
The filing has not only raised questions about the accountability and responsibility of those involved, but it has also sparked debates about the future of crypto lending and the potential for other firms to follow in Genesis’ footsteps. Until further updates are provided, it is unclear how the community will react and what the long-term effects of this filing will be.