Genesis Files for Bankruptcy: Over 3.5 Billion Liabilities to Industry Giants

Crypto lending platform Genesis, a subsidiary of Digital Currency Group (DCG), a giant investor in the cryptocurrency market, has filed for bankruptcy protection.

Long grappling with the financial crisis, Genesis has filed for chapter 11 bankruptcy protection with the US Bankruptcy Court for the Southern District of New York. In the court application, More than 100,000 creditors and Liabilities between $1 billion and $10 billion may have been declared.

Cameron, Gemini executive winklevossthrown shortly after the announcement of the application in the tweet He called out to creditors and said that the bankruptcy “very important step for us to get your assets back” said that.

Particularly, the stock market, which was seriously injured by the bankruptcy of FTX, started withdrawing money from the Gemini Earn program. on 16 November had stopped. The company, which has been in search of financing since then, has made a payment to ensure cash flow in the process.Although he applied to many places, he could not find the liquidity he wanted. could not provide.

After these events, first Gemini Earn customers, both Genesis and To Digital Currency Group initiated a class action lawsuit. A similar move soon came from the U.S. Securities and Exchange Commission (SEC), and the regulatory agency named Genesis. unregistered sale of securities started a lawsuit accusing him of

Big Companies Are Among The Top 50 Creditors

Total debt to its 50 largest creditors, although Genesis’s debt to its creditors has yet to be formally confirmed. It exceeds 3.5 billion dollars. This is intertwined “debt chain” Gemini Earn customers are an important part of it. According to court sources, Genesis “Earn” to customers 765 million dollars to crypto fund Mirana 151.5 million dollars, MoonAlpha Finance, the team behind Babel Finance 150 million dollars and to a fund of VanEck 53 million dollar debt exists.

The big companies among its other biggest creditors are as follows:

  • Crypto hedge fund Coincident: 112.2 million dollars
  • DeFi protocol Donut: 78 million dollars
  • Decentraland (MANA): 55 million dollars
  • Cryptocurrency Company Abra: 30 million dollars
  • CumberlandDRW: $18.7 million
  • Stellar (XLM) Foundation: 13 million dollars

Also in Genesis creditor file “unknown” 2 different creditors in total $692 million appears to be in debt. A few days before the Financial Times filed for bankruptcy, it published a report on Genesis creditors.

source site-10