Crypto lender Genesis Global Capital is said to be preparing to file for Chapter 11 bankruptcy protection as soon as this week.

According to a report by Bloomberg, the subsidiary of Digital Currency Group (DCG) is trying to raise cash to help cover its debts. If it fails to do so, it will file for bankruptcy.

Genesis reportedly owes more than $3 billion to its creditors. Genesis’ parent DCG is considering selling part of its venture capital portfolio to bail out its wholly-owned subsidiary. The portfolio is worth over $500 million and consists of over 200 crypto-related companies.

One of the creditors Genesis owes money to is Gemini, the crypto exchange with over $900 million in customer funds stuck with the troubled lender. Gemini halted withdrawals in late November following Genesis’ decision to stop loan redemptions.

Gemini has recently started a public feud with Genesis, DCG, and its founder and CEO, Barry Silbert. Cameron Winklevoss, Gemini’s co-founder, has accused Silbert of accounting fraud and demanded his removal from the company. 

Unable to solve the liquidity issues related to Genesis, Gemini has since terminated the loan partnership with the lender and officially ended its Earn program.

However, this didn’t stop regulators from taking a closer look at both Gemini and Genesis. The U.S. Securities and Exchange (SEC) has ended up charging the two companies for selling unregistered securities to hundreds of thousands of investors worldwide. 

The SEC even implied that Genesis loaned Gemini customer funds to DCG, which used the money to fund investment opportunities and repurchase DCG stock from non-employee shareholders in secondary transactions.

Genesis is perhaps the last-standing crypto lender in the market. Investors should follow the developments of this story to better prepare for a potential sell-off of digital assets if Genesis indeed files for bankruptcy.