Scope Markets, Saxo Markets and StoneX and More: Executive Moves of the Week

Reaching the end of January, the number of executive roles being onboarded this week has dropped marginally in the forex, crypto and fintech...

Crypto Lender Genesis Files for Bankruptcy

- Advertisement -

Key Takeaways Genesis has filed for bankruptcy. The crypto lender owes over $3.5 billion to its top 50 creditors. Gemini co-founder Cameron Winklevoss is threatening to sue DCG CEO Barry Silbert. Share this post

- Advertisement -

Digital Currency Group subsidiary Genesis Global Capital has filed for bankruptcy protection. It owes over $3.5 billion to its top 50 creditors.

- Advertisement -

$3.5 Billion in Liabilities

- Advertisement -

After months of uncertainty, Genesis has finally capitulated.

Troubled crypto lending firm Genesis Global Capital filed for Chapter 11 bankruptcy protection yesterday in the US Bankruptcy Court for the Southern District of New York.

Shortly after filing for bankruptcy, the firm published a list of its top 50 creditors, which included such names as Gemini, Cumberland, Mirana, and MoonAlpha Finance. Other large creditors have had their names redacted. According to the document, Genesis Global Capital owes over $3.5 billion to the creditors on that list.

The company estimated its assets and liabilities between $1 billion and $10 billion, while Genesis Global Holco—Genesis Global Capital’s parent company—and its subsidiary Genesis Asia Pacific marked their own assets and liabilities in the $100 million to $500 million ranges, respectively.

Originally impacted by the Terra collapse and Three Arrows Capital’s subsequent wipeout, the crypto lender froze loan originations and redemptions in the immediate aftermath of the FTX implosion, on November 16, citing extreme market dislocation.

As a result, crypto exchange Gemini was forced to end its Earn program, which offered Gemini customers the opportunity to lend their crypto assets to Genesis at a healthy interest rate. Thereafter, Gemini co-founder Cameron Winklevoss began publishing open letters on Twitter aimed at Digital Currency Group CEO Barry Silbert, accusing him of defrauding Gemini Earn customers. Genesis functions as a subsidiary of Digital Currency Group.

Following the news of Genesis’ bankruptcy filing, Winklevoss took to Twitter againthreatening to sue Silbert and Digital Currency Group if they failed to “come to their senses and make a fair offer to creditors.”

Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.

Share this post

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.


- Advertisement -