Officially.. Genesis cryptocurrency platform files for bankruptcy

Genesis Global and two of its lending companies have filed for bankruptcy protection.

According to “Al-Arabiya” and according to the documents submitted by the company to the US Federal Court in Manhattan, the number of the company’s creditors exceeded 100 thousand, and the financial obligations amounted to 11 billion dollars.

Genesis’s bankruptcy comes days after the US Securities and Exchange Commission filed a lawsuit against the company over the sale of unregistered securities.

Talal Al-Tabbaa, co-founder of CoinMENA, explained that the cryptocurrency companies that have gone bankrupt are all financial companies run by people who are prone to making mistakes and taking excessive risks, and they do not operate according to the “blockchain” system.

He added that in the case of FTX platform loans, there was ease in liquidating assets via decentralized platforms, and that decentralized financial services still work without problems despite the pressures of the recent collapse in the sector.

On the other hand, in an interview Thursday morning on CNBC, JPMorgan Chairman and CEO Jamie Dimon shared his thoughts on crypto, and Bitcoin more specifically.

He said that Bitcoin is a “scam,” adding that it differs from the “blockchain” technology, the technological “ledger” system that is used to transfer information and funds.

Dimon also added that he was not surprised by the collapse of cryptocurrency exchange FTX in November.