Crypto debt firm owned by Digital Currency Group (DCG) Genesis Global continues its negotiations with creditors due to the current shortage of liquid assets. According to a report, it was warned that if the firm could not raise more funds, it could file for bankruptcy.
Genesis Prepares for Bankruptcy
There is information in the news that creditors such as the Winklevoss twins will be willing to accept a remission period of one to two years under the bankruptcy plan. This deferral period will apply to most payments. Also, the creditors are the umbrella company of Genesis, managed by Barry Silbert. Digital Currency GroupThey will also receive cash payments in addition to their shares in .
Gemini co-founders Cameron Winklevoss and Barry Silbert accused Silbert of manipulating the crypto firm’s finances and negotiating in bad faith. In the published open letter, DCG requested that his boss step down after failing to fulfill his promise to return $900 million in client funds.
While DCG continues to show that Genesis’ financial situation is getting worse. On January 17, he shared the information that “no dividends will be paid” to shareholders. Despite various consulting services, the company is struggling to resolve issues.
After problems at Three Arrows Capital, Digital Currency Group ran into big problems. In November, shortly after FTX, the cryptocurrency exchange where Genesis stores some of its cash, filed for bankruptcy, Genesis halted withdrawals.
Crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss, was also affected by these developments, as Gemini Earn, a program that allows platform users to earn interest by lending their coins through Genesis, also had to stop processing redemption requests.
Genesis Global is currently laying the groundwork for filing for bankruptcy, which could happen later this week. If this bankruptcy occurs cryptocurrency market may face major problems.