According to a recent report in the Financial Times (FT) , ), Genesis Global Capital allegedly owes Gemini customers $900 million.
Genesis reportedly owes $900 million to Winklevoss-operated Exchange Gemini, according to reports
FT reports that the centralized cryptocurrency exchange created by the Winklevoss brothers has $900 million in debt, with Genesis Global Capital reportedly being the debtor. People familiar with the matter told his FT that Gemini is trying to recover funds from Genesis and its parent company, Digital Currency Group (DCG).
The report further alleges that Genesis seeks to raise money from investors to ease its financial burden. Genesis was reportedly trying to raise his $1 billion funding, but the FT details that it was cut to about $500 million. The news follows a report released by our author, Joe Wright, that Genesis is reportedly under investigation by state securities regulators.
Furthermore, on November 22, 2022, The New York Times (NYT) reported thatGenesis Global Capital had hired restructuring advisors. The NYT detailed that Moelis & Company was hired by Genesis to “explore options, including possible bankruptcy,” according to three people familiar with the matter. His FT report on issues between Genesis and Gemini shows FT sources saying Gemini is in the process of creating a creditors committee.
Last month, Gemini revealed that customers using her Earn program on the platform were unable to withdraw funds. “We are working with the Genesis team to help our customers redeem their funds from our acquisition program as soon as possible,” he said on November 16, 2022. I was. Gemini said that Gemini’s customer funds were at a one-to-one rate for him at any time, and the exchange’s other products and services were normal.
Gemini’s message was published on the same day detailing that Genesis Global Capital was suspending withdrawals and initiating new loans. DCG founder Barry Silbert noted in a November 22 letter to shareholders that Genesys’ lending arm has not “impacted Genesys’ spot and derivatives trading or custody business.” is important,” he elaborated. We will be open as usual. Silbert also reassured shareholders that his company “will continue to be a leading builder in the industry.”
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