Key points to remember
- 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.
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Digital Currency Group subsidiary Genesis Global Capital has filed for bankruptcy protection. He owes more than $3.5 billion to his top 50 creditors.
$3.5 billion in liabilities
After months of uncertainty, Genesis finally capitulated.
Struggling crypto lending firm Genesis Global Capital yesterday filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
Shortly after filing for bankruptcy, the company released a list of its top 50 creditors, which includes names such as Gemini, Cumberland, Mirana and MoonAlpha Finance. Other major creditors have had their names redacted. According to the document, Genesis Global Capital owes more than $3.5 billion to creditors on this list.
The company has estimated its assets and liabilities between $1 billion and $10 billion, while Genesis Global Holco – the parent company of Genesis Global Capital – and its subsidiary Genesis Asia Pacific have marked their own assets and liabilities between $100 million and $500 million, respectively. of dollars.
Initially affected by the collapse of Terra and the subsequent obliteration of Three Arrows Capital, the crypto lender frozen the granting and repayment of loans in the aftermath of FTX’s implosion on November 16, citing extreme market dislocation.
As a result, crypto exchange Gemini 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. Subsequently, Gemini co-founder Cameron Winklevoss began posting open letters on Twitter to Digital Currency Group CEO Barry Silbert accusing him of defrauding Gemini Earn customers. Genesis operates as a subsidiary of Digital Currency Group.
Following Genesis’s bankruptcy filing announcement, Winklevoss took over Twitterthreatening 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 this article, the author of this article owned BTC, ETH, and several other crypto assets.