Key Points:
- Genesis owes $3.8 billion to its top creditors, who include hedge fund manager VanEck and the Stellar Development Foundation, the makers of XRP competitor Stellar.
- Before filing for bankruptcy, the crypto firm and Gemini teamed up to launch Gemini’s Earn program, which let retail investors earn money by lending out their digital assets.
According to new documents, the struggling cryptocurrency lender Genesis owes billions of dollars to its 50 biggest debtors.
The crypto business owes $3.8 billion to its top creditors, who include hedge fund manager VanEck and the Stellar Development Foundation, the makers of XRP competitor Stellar, according to recent voluntary bankruptcy filings (XLM).
Other notable creditors include the cryptocurrency investment business Digital Finance Group, the cryptocurrency trading platform Coinhouse, and the cryptocurrency lender Gemini. Previously, the now-bankrupt crypto firm and Gemini teamed to launch Gemini’s Earn program, which let retail investors earn money by lending out their digital assets.
As reported in the statement, the firm owes $765 million to members of Gemini’s Earn program, the largest single sum it owes.
Coincu previously reported on January 20, that Genesis Global filed for Chapter 11 bankruptcy protection in New York federal district court.
Three voluntary applications were submitted to the bankruptcy court by Genesis Global Holdco, LLC, Genesis Asia Pacific Pte. Ltd., and Genesis Global Capital, LLC.
Last year, the business encountered difficulties when crypto hedge fund Three Arrows Capital failed, resulting in liquidity challenges. The crypto broker’s difficulties were aggravated by the failure of FTX.
While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders.
stated by Genesis interim CEO Derar Islim in a press release
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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