Cryptocurrency broker Genesis Global Capital, which faced a liquidity problem after the collapse of the FTX crypto exchange, initiated bankruptcy proceedings. The company has more than 100,000 creditors with total liabilities ranging from $1.2 billion to $11 billion, according to filings with the regulator.

The company filed for Chapter 11 bankruptcy Thursday evening in the United States Bankruptcy Court for the Southern District of New York. Similar applications were filed by Genesis Global Holdco (the parent company of Genesis Global Capital) and Genesis Asia Pacific Pte, which, like the other two, is part of the Digital Currency Group (DCG) holding of billionaire Barry Silbert. Their liabilities to creditors are estimated at $100 million and $500 million, respectively.

The statement said that other subsidiaries of the holding, engaged in derivatives, spot trading and depository business, as well as Genesis Global Trading, will continue trading operations with clients as usual.

According to the bankruptcy filing, Genesis Global Capital owes $3.5 billion to the top 50 creditors, including the Gemini cryptocurrency exchange, Cumberland, Mirana, MoonAlpha Finance, and the VanEck New Finance Income Fund.

Genesis Global Capital provided a more than $2.3 billion cryptocurrency loan to hedge fund Three Arrows Capital (3AC), which filed for bankruptcy in July, as well as $2.5 billion to Alameda Research, a hedge fund founded by Sam Bankman-Fried and closely associated with its FTX exchange. However, Alameda Research repaid the loan in August.

Due to liquidity issues, Genesis Global Capital stopped withdrawing funds to clients in November last year.