Beleaguered crypto lender Genesis Global Capital, the cryptocurrency lending unit of Digital Currency Group (DCG), could file for bankruptcy as soon as this week, according to Bloomberg.

What Happened: Genesis fell into a liquidity crunch, and halted redemptions shortly after revealing on Nov. 10 that it had $175 million locked in an FTX (CRYPTO: FTT) trading account.

The company warned investors then that it may need to file for bankruptcy if its efforts to raise $1 billion in fresh capital fail.

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Genesis suffered steep losses due to loans it provided to the now-defunct crypto hedge funds Alameda Research and Three Arrows Capital. Both Alameda and Three Arrows filed for bankruptcy last year.

Genesis laid off 20% of its workforce in August 2022, citing market conditions, and 30% more were let go earlier this month after CEO Derar Islim said that the company was "reducing costs and driving efficiencies" across all of its companies.

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