USA: According to sources familiar with the situation, cryptocurrency brokerage Genesis Global Capital is preparing to declare bankruptcy as soon as this week, according to a report published on Wednesday by US Media 

Following the failure of the hedge fund Three Arrows Capital, financial pressure started to build up at the cryptocurrency lending division of Digital Currency Group (DCG) in the summer of last year. In November, shortly after the crypto exchange FTX, in which Genesis had invested about $175 million, filed for bankruptcy, Genesis suspended withdrawals of funds.

The failures have had an impact on the entire industry, with Cameron and Tyler Winklevoss' cryptocurrency exchange Gemini Trust suffering the most. Gemini Earn, which gives its users a return for lending out their coins via the exchange, stopped redemptions as well, depriving its clientele of access to $900 million in assets.

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As a result of the disagreement that developed between DCG and Gemini, Gemini co-founder Cameron Winklevoss accused DCG's founder and CEO Barry Silbert of using "stall tactics" to avoid paying creditors.

Although Silbert has referred to Winklevoss' accusations as a publicity stunt, the dispute has come to light. Due to this, Gemini ended its loan agreement with Genesis earlier this month, and the Gemini Earn programme was formally shut down.

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Genesis currently owes its creditors at least $1.8 billion. Other parties have also brought $900 million in claims against Genesis in addition to the clients of Gemini.

Bloomberg was informed by the sources that creditors, Genesis, and DCG exchanged several proposals but have yet to reach an agreement. According to reports, the company is putting together a restructuring plan and has been exchanging ideas with its creditors, some of whom have proposed getting a combination of cash and equity from DCG.

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Furthermore, the DCG-owned cryptocurrency news site CoinDesk confirmed to Bloomberg in a statement on Wednesday that it hired Lazard as a financial adviser to investigate options like a partial or complete sale.