Crypto lending unit of Genesis files for U.S. bankruptcy

Representations of cryptocurrencies are seen in front of displayed decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -The lending unit of crypto firm Genesis filed for U.S. bankruptcy protection on Thursday, owing creditors at least $3.4 billion after being toppled by a market rout along with exchange FTX and lender BlockFi.

Genesis Global Capital, a leading crypto lender, froze customer redemptions on Nov. 16 after the collapse of major exchange FTX sent shockwaves through the crypto sector.