Is crypto lender Genesis bankruptcy the end of the era for the spreading FTX contagion?
- 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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
