- Genesis filed for bankruptcy.
- The cryptocurrency lender owes more than $3.5 billion to the 50 largest creditors.
- Gemini founder Cameron Winklevoss threatens to sue DCG CEO Barry Silbert.
Genesis Global Capital of Digital Currency Group has filed for bankruptcy protection. It owes more than $3.5 billion to its 50 largest creditors
$3.5 billion in debt
After months of uncertainty, Genesis finally gave up.
Troubled crypto lending firm Genesis Global Capital filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York yesterday.
Shortly after filing for bankruptcy, the company published a list of its 50 largest creditors, which includes names like Gemini, Cumberland, Mirana, and MoonAlpha Finance. The names of the other major creditors have been revised. According to the document, Genesis Global Capital owes more than $3.5 billion to the creditors on that list.
The company estimated its assets and liabilities to be between $1 billion and $10 billion, while Genesis Global Holco — the parent company of Genesis Global Capital — and its subsidiary Genesis Asia Pacific put their assets and liabilities in the $100 million to $500 million range, respectively.
It was originally affected by the collapse of Terra and the subsequent wipeout of Three Arrows Capital, a crypto lender Initiation and recovery of the frozen loan In the wake of the implosion of FTX, on November 16th, citing severe market displacement.
As a result, the Gemini crypto exchange was forced to terminate its Earn program, which offered Gemini customers the opportunity to lend their crypto assets to Genesis at a healthy interest rate. Then, Gemini co-founder Cameron Winklevoss began posting open letters on Twitter addressed to Barry Silbert, CEO of Digital Currency Group, accusing him of defrauding Gemini Earn customers. Genesis operates as a subsidiary of Cryptocurrency Group.
After the news of Genesis’s bankruptcy filing, Winklevoss to Twitter againHe threatened to sue Silbert and the 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 owns BTC, ETH, and many other crypto assets.