Cryptocurrency lender Genesis has filed for bankruptcy.
The firm had recently been charged by US regulators Securities and Exchange Commission (SEC) with illegally selling crypto.
It is part of the Digital Currency Group (DCG), a conglomerate of more than 200 crypto-focused businesses.
The insolvency of Genesis is linked to the bankruptcy of FTX, which went under last November amid allegations of fraud.
Genesis had originally been set up as an “over the counter” Bitcoin trading desk, enabling the trade of large amounts of crypto.
Earlier this month, it announced it was laying off 30% of its staff, taking it down to 145 employees.
“We look forward to advancing our dialogue with DCG and our creditors’ advisers as we seek to implement a path to maximise value and provide the best opportunity for our business to emerge well-positioned for the future,” Genesis interim chief executive Derar Islim said in a statement.