Genesis Global Case

The court has denied the request to dismiss the case, allowing it to proceed.

D. Connecticut

Court

3:23-cv-82 (SRU)

Case number

02/02/2021

Class period Start

11/16/2022

Class period End

On November 22, 2022, Crypto Broker/Exchange Genesis warned about Bankruptcy without funding.

"Our goal is to resolve the current situation consensually without the need for any bankruptcy filing," a Genesis spokesperson previously said in an emailed statement to Reuters, adding it continues to have conversations with creditors.

Ealier, The Wall Street Journal reported, citing sources, that Genesis had approached Binance seeking an investment but the crypto exchange decided against it, fearing a conflict of interest. Genesis also approached private equity firm Apollo Global Management for capital assistance, the WSJ said.
On November 16, 2022, Genesis suspended withdrawals within its lending unit and blamed the recent collapse of exchange FTX for spurring a spike in withdrawal requests that exacerbated the lender’s liquidity.

Despite the general negative market conditions for crypto assets after the FTX collapse, Investors and Genesis' Clients have every reason to suspect that the financial institution has not done everything possible, as required by law and regulations, to fulfill its fiduciary duties to stakeholders.

Case Type

Consumer Class Action

Case Status

Motion to dismiss denied

Alleged Offence

Mismanagement,

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Shareholder,

Service Provider,

Hedge Fund

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

11/22/2022

Filing date

01/23/2023

Judge

Hon. Stefan R. Underhill