1. Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, has filed for Chapter 11 bankruptcy protection.
2. Wilk Auslander LLP Partner Eric Snyder discussed the legal and industry implications of the filing.
3. It is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, recently filed for Chapter 11 bankruptcy protection, creating uncertainty and implications for both the legal and industry sectors. Wilk Auslander LLP Partner Eric Snyder recently discussed these implications on CoinDesk TV’s “First Mover”, noting that it is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

The filing of bankruptcy protection for three of Genesis’ crypto lending businesses has creditors worried about the potential losses they may face. Snyder noted that it may take a long time to figure out the assets and liabilities of Genesis, so creditors may have to wait to find out just how much they may lose. He also weighed in on Gemini CEO Cameron Winklevoss threatening to sue DCG CEO Barry Silbert over the repayment of a $900 million loan. DCG is the parent company of CoinDesk and Genesis.

Snyder explained that this case is unique in the sense that it is the first to involve a crypto lending business, and it has the potential to set a precedent for future cases involving cryptocurrency. He added that Chapter 11 bankruptcy protection offers Genesis an opportunity to reorganize its debt and assets in a way that may be more beneficial to the company and its creditors.

When it comes to cryptocurrency, the legal implications are often much more complicated than traditional debt and asset cases. Snyder noted that this case will likely require a complex analysis of the many different types of assets and debts that Genesis is dealing with, including cryptocurrency and fiat currency.

Overall, this case will be a learning experience for lawyers, financial institutions and creditors dealing with cryptocurrency. It will be interesting to see how it plays out, and if it does set a precedent for other cases involving cryptocurrency. As for Genesis and its creditors, it remains to be seen if the company can reorganize its debt and assets in a way that is beneficial for all parties involved.