Creditors call Genesis’ bankruptcy file ‘very dirty’: What went wrong?

  • Genesis’ creditors questioned the manner in which the bankruptcy filing was made.
  • The cryptocurrency lender, Mirana and Cumberland, has been accused of providing misleading and inaccurate information.

Genesis Global has become the latest crypto company to succumb to the ongoing crypto winter that has caused many companies to go bankrupt in its wake. The industry has been waiting for a cryptocurrency lender to go bankrupt. However, two specific companies objected to the way Genesis handled its bankruptcy filing.

“Misleading and incorrect information” from Genesis

Mirana, the investment arm of cryptocurrency exchange ByBit, and Cumberland cryptocurrency trading firm Genesis have been accused of careless handling of its bankruptcy filing. Crypto lender Archived It filed for Chapter 11 bankruptcy on January 20 with a massive debt of $5.1 billion.

Shortly after filing for bankruptcy, excerpts from the Chapter 11 filing began circulating on Twitter, detailing how much the lender owed its creditors. Twins, Decentraland [MANA]And the Stellar Foundation was among the most popular names on the list, which had a total exposure of $833 million.

Also on this list was Mirana, with $151 million listed as an unsecured claim to her name. The listing also revealed that Cumberland owed $18 million.

Jonathan Allen, managing partner at Mirana Ventures, opposed the deposit because it only mentioned “Mirana Corp” rather than Mirana Asset Management, the actual creditor. chirp:

“I have no connection with Mirana AM and a lot of the information, including the amount, is incorrect. Very sloppy keeping.”

This was followed by a tweet From Cumberland’s official Twitter account, which called out Genesis for spreading “misleading and incorrect information.” According to the cryptocurrency exchange, it closed its fully secured loan to Genesis on November 16, 2022. This left a total exposure of $46,064, instead of the $18 million required in the bankruptcy filing.

Shortly after filing for bankruptcy, the head of Genesis’ largest creditor threatened parent company Digital Currency Group and CEO Barry Silbert.

Cameron Winklevoss, who participated in a public hostility With Silbert due to non-payment of the cryptocurrency lender, he indicated that he was willing to put up with it Legal action against DCG and the Director if they fail to provide a reasonable remedy.

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