Major cryptocurrency lender Genesis has confirmed that it has filed for bankruptcy after weeks of speculation about the company closing its doors.

The move comes days after the US Securities and Exchange Commission (SEC) charged the business for the unregistered sale of securities to retail investors via its platform.

The regulator said that both Genesis and Gemini raised billions of dollars’ worth of crypto assets from hundreds of thousands of investors.

The government agency says that there are also other ongoing investigations looking at separate law violations and "other entities and persons" relating to the alleged misconduct.

Genesis is currently in a dispute with the Cameron and Tyler Winklevoss-founded Gemini.

Gemini says Genesis owes it $900 million in connection with a deal the pair struck over Gemini’s crypto lending product Earn.

The company is the latest in a recent list of crypto businesses going bust, including the high-profile collapse of FTX in November. Genesis froze customer redemption in the wake of the crash, leading to speculation about its own closure.

Crypto lender BlockFi and crypto mining company Core Scientific Inc have also both filed for bankruptcy since then.

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” said Derar Islim, interim chief executive at Genesis. “We deeply appreciate our clients’ ongoing patience and partnership as we work towards an equitable solution.”

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