key takeaways
- Genesis has filed for bankruptcy.
- The crypto lender owes more than $3.5 billion to its top 50 creditors.
- Gemini co-founder Cameron Winklevoss threatens to sue DCG CEO Barry Silbert.
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Digital Currency Group subsidiary Genesis Global Capital has filed for bankruptcy. You owe more than $3.5 billion to your top 50 creditors
$3.5 billion in liabilities
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 company released a list of its top 50 creditors, which includes names like Gemini, Cumberland, Mirana and MoonAlpha Finance. Other big creditors have had their names redacted. According to the document, Genesis Global Capital owes more than $3.5 billion to creditors on that list.
The company 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 marked their own assets and liabilities in the $100 range. million to $500 million, respectively.
Originally shocked by the collapse of Terra and the subsequent removal of Three Arrows Capital, the crypto lender froze loan originations and repayments immediately after the FTX implosion, on November 16, citing extreme market dislocation.
As a consequence, the Gemini cryptocurrency exchange was forced to end its Earn program, which offered Gemini clients the opportunity to lend their crypto assets to Genesis at a healthy interest rate. Thereafter, Gemini co-founder Cameron Winklevoss began posting open letters on Twitter directed at Digital Currency Group CEO Barry Silbert, accusing him of defrauding Gemini Earn clients. Genesis is operated as a subsidiary of Digital Currency Group.
Following news of Genesis’s 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 article owned BTC, ETH, and various other crypto assets.
