On Wednesday Bloomberg reported that Crypto brokerage Genesis Global Capital is making preparations to file for bankruptcy in the coming days, citing sources familiar with the situation.

Digital Currency Group, the parent company to Genesis Global Capital, as well as CoinDesk, Foundry, Grayscale Investments, and Luno, began to show signs of financial pressure over the summer of 2022, following the collapse of cryptocurrency hedge fund Three Arrows Capital. Following the bankruptcy filing of the failed cryptocurrency exchange FTX, Genesis suspended withdrawals. Genesis had invested $175 million of user assets in FTX, with a promise to pay its users a high interest rate on the loans. The collapse of FTX has left the status of those assets in limbo.

The failures of large crypto players like Three Arrows and FTX have sent ripples across the crypto sector, with a major impact on lenders like Genesis, as well as other entities which partnered with them. Gemini Trust, controlled by Tyler and Cameron Winklevoss, had partnered with Genesis to offer their clients access to Genesis’ Earn program. Under the program, Gemini’s users could take crypto assets they were holding, give it to Genesis, Genesis would lend it out to entities like FTX, and then Genesis would offer a portion of the interest the borrowers paid it, to back to the owners of the assets.

When FTX collapsed, Genesis suspended redemptions, denying asset owners the ability to access their assets. This left Gemini customers unable to access their portion of the $900 million in assets which Gemini users had invested in Earn accounts.

Cameron Winklevoss very publicly accusing DCG and its founder and CEO Barry Silbert of using “stall tactics” to avoid repaying creditors.

At last count, Genesis owes a minimum of $1.8 billion to creditors, with $900 million owed to Gemini customers, and another group of investors filing a claim of $900 million against the firm.

Negotiations between the parties are ongoing, however DCG, Genesis, and its creditors have failed so far to reach any agreement. As the company works on a restructuring plan, some creditors have proposed receiving a mix of cash and equity from DCG to settle their accounts.