• Genesis, a crypto lender, has laid off 30% of its staff and may file for Chapter 11 bankruptcy
• Genesis CEO Derar Islim wrote that the firm was “reducing costs and driving efficiencies” in all of its businesses
• Other crypto firms such as Celsius, Voyager Digital, FTX and BlockFi have filed for bankruptcy in recent months

The crypto lending firm Genesis has announced that it is laying off 30% of its workforce and may file for bankruptcy. The announcement came from Derar Islim, CEO of Genesis, in a statement on Jan. 4. Islim wrote that the firm was “reducing costs and driving efficiencies” in all of its businesses.

The Wall Street Journal reported that Genesis is evaluating a possible chapter 11 bankruptcy filing in cooperation with Moelis & Co. The intention of this filing is to “preserv[e] client assets and mov[e] the business forward”, according to a spokesperson.

This news follows a trend of crypto firms filing for bankruptcy in recent months. Celsius, Voyager Digital, FTX and BlockFi are some of the companies that have sought bankruptcy protection over the past 12 months.

The news of Genesis’ potential bankruptcy filing has been met with apprehension by investors. Many are concerned about the potential implications of the filing on their investments. Genesis has reassured investors that it is committed to resolving its financial issues and is “moving as quickly as possible”.

Time will tell whether Genesis will be able to successfully navigate its financial difficulties. If it does, it will join the ranks of other crypto firms that have successfully emerged from bankruptcy. On the other hand, if it is unable to do so, it could join the list of crypto firms that have suffered from financial difficulties in the current bear market.