03 Dec 2022
Gemini, the crypto exchange, is reportedly attempting to collect $900 million from Genesis, the crypto lender
Cryptocurrency broker Genesis and its parent company Digital Currency Group (DCG) owes the Winklevoss twins' cryptocurrency exchange $900 million.
The Financial Times reported on Saturday, which cited people with knowledge of the situation, cryptocurrency exchange Gemini attempted to recoup the funds after Genesis was caught off guard by Sam Bankman-Fried's FTX crypto group's failure last month.
Barry Silbert, the chief executive of venture capital firm Digital Currency Group, informed shareholders the previous month that Genesis Trading and cryptocurrency asset manager Grayscale owe $575 million to Genesis' crypto lending division.
To recover the funds from Genesis and its parent DCG, Gemini, which manages a crypto lending product in collaboration with Genesis, has now established a creditors' committee, according to the report.
According to three people familiar with the situation, the New York Times reported last month that Genesis had hired investment bank Moelis & Company to investigate options, including a potential bankruptcy.
The sudden failure of the cryptocurrency exchange FTX was cited as the reason Genesis Global Capital suspended customer redemptions in its lending business last month.
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