- 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
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.