Genesis bankruptcy

A crypto analyst illustrated how crypto firms were potentially connected throughout all the recent bankruptcies.

As the crypto lender Genesis filed for Chapter 11 bankruptcy protection in New York, members of the crypto community went on social media to express their thoughts on the matter. 

From believing that no one will be held accountable to labeling the entire crypto lending concept as “stupid,” members of the community gave their thoughts on the newest addition to the seemingly never-ending bankruptcy spree within the crypto space.

Some members of the community believe that the winners in all of these events will be the bankruptcy lawyers in charge of the case. According to a community member who claimed to be a Voyager creditor, customer funds will be used to pay million to the lawyers and in the end, “no one will be held accountable.”

Genesis just filed for chapter 11.

Bankruptcy lawyers making bank on crypto bankruptcies.

— Coin Bureau (@coinbureau) January 20, 2023

As Gemini co-founder Cameron Winklevoss pointed out the bankruptcy is "good news" and a step toward Gemini users getting their money back, a community member called out Winklevoss’ thread and reiterated that the only victims are the users. According to the user, Gemini is “also as guilty” for not doing its due diligence on Genesis’ way of doing business before partnering with them. 

Related: CFTC commissioner calls for global industry standards in crypto regulation

Meanwhile, a crypto analyst created an illustration of how crypto firms were potentially connected throughout all the bankruptcies that the industry faced recently. According to the analyst, the Genesis bankruptcy will reveal crypto’s entire leverage cycle.

Genesis bankruptcy is going to reveal the entire crypto leverage cycle.

Enjoy. pic.twitter.com/X9zduPzlQY

— Alfa (@alphaketchum) January 20, 2023

Seemingly sick and tired of the negativity that surrounds the space, some community members expressed their lack of trust in crypto companies. A Twitter user said that people just can't trust US-based companies anymore as they were all connected to each other. Dogecoin creator Billy Markus also commented on the issue dubbing the entire concept of crypto lending as "stupid" and calling everyone involved an "idiot."