- Crypto lender Genesis filed for bankruptcy weeks after the exchange froze withdrawals for users.
- The largest creditors are Gemini exchange, Bybit’s Mirana, Babel Finance and Coincident Capital alongside 50 other unsecured lenders.
- Genesis has been locked in a dispute with crypto exchange Gemini over $900 million in the platform’s lending product “Earn.”
Genesis, a crypto lender owned by the Digital Currency Group has filed for bankruptcy weeks after the insolvency crisis hit the FTX exchange. The lender had halted crypto withdrawals for users since November and was embroiled in a spat with Winklevoss’ exchange platform Gemini.
Gemini offered a crypto lending product called Earn in partnership with Genesis, now the lender owes it $900 million in connection with that product.
Also read: Crypto lender Genesis struggles to enable withdrawals for users amid spreading FTX contagion
Genesis files for bankruptcy with $150 million in cash, end of the FTX contagion?
Digital Currency Group (DCG) owned crypto lender Genesis has filed for bankruptcy. The US Securities and Exchange Commission (SEC) charged Genesis and Gemini with illegally selling securities to hundreds of thousands of investors through their crypto lending program.
In partnership with Genesis, Gemini offered a crypto lending product called “Earn.” The Winklevoss twins’ exchange says DCG’s Genesis owes it $900 million in connection with that product.
Genesis listed over 100,000 creditors in a “mega” bankruptcy filing with liabilities ranging from $1.2 billion to $11 billion dollars, according to bankruptcy documents.
Find the list of Genesis’ creditors below:
Creditors of Genesis
The largest creditors of Genesis include Gemini with $765 million, Bybit’s Mirana with almost $152 million, Babel Finance with $150 million, Coincident Capital with $112 million alongside 50 other large unsecured claims.
Samuel Bankman-Fried’s FTX exchange collapse claimed several victims since November. Crypto lender BlockFi and one of the biggest publicly traded crypto mining companies in the US, Core Scientific Inc, both filed for bankruptcy protection in the following months.
Genesis and its parent company DCG and its creditors have exchanged several proposals, but failed to come to an agreement. The crypto lender’s collapse made a dent in the crypto ecosystem with the large debt it owes to its creditors. Ran Neuner, CNBC Crypto Trader believes that the Genesis bankruptcy has been priced in since November.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.