Cryptocurrency lender Genesis has filed for bankruptcy after being charged by US regulators Securities and Exchange Commission (SEC) with illegally selling crypto.

It is not known how many UK or European customers Genesis has but the collapsed FTX exchange was is said to have 80,000 British investors.

Genesis is part of the the Digital Currency Group (DCG), a conglomerate of more than 200 crypto-focused businesses.

According to reports, the insolvency of Genesis is linked to the bankruptcy of FTX, which crashed in November amid allegations of fraud.

Genesis was originally an “over the counter” Bitcoin trading desk, enabling the trade of large amounts of crypto.

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“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.

Genesis had been hit by the collapse of another crypto firm, Three Arrows Capital, which went bankrupt in June last year.

The firm claimed it was owed around $1.2bn (£971m) by Three Arrows, which had been brought down by the collapse of by the collapse of cryptocurrencies Luna and TerraUSD in May.