Genesis Global Trading, a subsidiary of Barry Silbert’s Digital Currency Group (DCG), filed for Chapter 11 bankruptcy in the Southern District of New York court.

Two of its lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific, also filed voluntary petitions under the bankruptcy code. The filing does not include Genesis’ other subsidiaries involved in derivatives and spot trading and custody businesses and they will continue client trading operations. (Tech Crunch)

The stricken crypto lender plans to use its over $150 million in cash as liquidity for ongoing operations and restructuring. The filing is part of a “dual track process” for sale, capital raise or equitization transaction that may result in new ownership.

The “mega” bankruptcy filing follows struggles to raise capital, staff cuts, and financial hits from crypto events. The company had a trading and lending relationship with Three Arrows Capital and Alameda, a sister company of FTX.

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” Derar Islim, interim CEO, said in a statement on Thursday.

According to CNBC, the company declared it had over 100,000 creditors and liabilities ranging from $1.2 billion to $11 billion dollars, as per bankruptcy documents.

On January 12, the U.S. Securities and Exchange Commission charged Genesis and cryptocurrency exchange Gemini for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.

The prosecutors said Genesis and Gemini raised billions of dollars’ worth of crypto assets from hundreds of thousands of investors.

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