Next FTX Comment from CNBC Analyst: 1 Month Later…

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John Todaro, head of crypto and blockchain research at Needham & Company, talks to CNBC about the risks of FTX contamination.

Analyst’s comment on FTX

Here is what John Todaro, head of crypto and blockchain research at Needham & Company, said about FTX:

“We must remember that the FTX fallout occurred three months after the collapse of other companies. It’s only been 1-2 months since the problems with FTX started, so a month from now you can see another company affiliated with FTX starting to struggle. Nobody was aware. Sometimes there is a little delay and it takes a few months for everything to come out.”

Genesis was a big lender in this space, so it had a lot of exposure to FTX and 3AC, which exploded earlier in the year. However, these borrowing and lending companies got themselves into good trouble. On the plus side this was mostly controlled by them and most of this leverage was withdrawn from the market. But for the next 3 weeks or a month, you should definitely be more careful.

Is the crypto company poised for bankruptcy?

The Wall Street Journal reported that Genesis, a crypto lender affiliated with DCG, has reportedly laid off 30% of its staff. While the incoming information said that the dismissals were not limited to one department, it was stated that it spread throughout the company. According to the information, Genesis is considering the option to file for Chapter 11 bankruptcy. In addition, DCG, the parent company of Genesis, closed an asset management unit of 3.5 billion dollars. It has been suggested that with this move, DCG may be preparing to pay off its debt to Gemini “Earn” customers. Genesis will terminate the employment of its employees and continue on its way with the remaining 145 employees. In the information received, it was stated that the company made this move to cover the loss caused by the bankruptcy of the crypto fund Three Arrows Capital. cryptocoin.comAs we have mentioned before, the company laid off 52 employees last August.

On the other hand, it was also among the rumors that Genesis is working with investment bank Moelis & Company to evaluate options for the future. The Chapter 11 Bankruptcy filing that the company intends to file is a form of bankruptcy that involves the reorganization of a debtor’s business relationships, debts, and assets. However, within the scope of this application, the company is exempted from its obligation to pay its creditors for the period specified by the court. Although this form of bankruptcy is used with different names and codes in different countries, it is referred to as chapter 11 in US commercial law. DCG announced in a statement that it was closing an asset management division of its own called HQ. HQ had assets of more than $3.5 billion by some sources. In the statement, he stated that they had to decide to close the HQ section due to the macroeconomic situation and the difficult conditions in the crypto money industry, and stated that the team was proud of their past work and looked forward to evaluating the possibility of restarting the project in the future.

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