While Genesis has officially filed for bankruptcy, the company owes at least $3.4 billion to its various creditors. Among them, Gemini wants to take legal action if a settlement is not reached in the Earn dispute.
Genesis bankruptcy leaves many debts to be paid back
After many twists and turns and increasingly strong rumours, Genesis has officially filed for Chapter 11 bankruptcy in the US. While we’ve definitely heard a lot about this law in the space of a year, the company has plenty of creditors to pay back, as Bloomberg correspondent Sonali Basak shared:
*CRYPTO FIRM GENESIS FILES FOR CHAPTER 11 BANKRUPTCY IN SDNY
– Sonali Basak (@sonalibasak) January 20, 2023
The document shows the 50 companies Genesis owes the most money to, and Gemini tops the list with $765 million according to the data shared.
However, they’re far from the only ones, even if they are the largest debt. The portfolio manager VanEck, for example, appears on the list with $53.1 million. It will be interesting to see how its cryptocurrency-exposed products perform, depending on the nature of the partnership with Genesis.
On the French side, we can also cite just over 14.8 million due to Coinhouse.
According to Reuters, Genesis owes a total of $3.4 billion, while its parent company, Digital Currency Group (DCG), owes more than $1.65 billion.
Gemini wants to go to court
After several public settlements of accounts, Cameron Winklevoss, the co-founder of the cryptocurrency exchange Gemini, announces without much surprise that his company may soon go to court:
1/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.
– Cameron Winklevoss (@cameron) January 20, 2023
Cameron Winklevoss takes particular aim at Barry Silbert, the CEO of Digital Currency Group, with whom he failed to reach an agreement to help users of his Earn product:
We are preparing to take direct legal action against Barry, DCG and others who share responsibility for the fraud that harmed the 340,000+ Earn users […]. Unless Barry and DCG come to their senses and make a fair offer to creditors, we will file suit against Barry and DCG shortly. “
Since the events leading up to the crash of the Terra (LUNA) ecosystem, a particularly deleterious chain reaction has been set in motion for many players in the ecosystem. Now that FTX is leaving new victims in its wake, it is now a question of how many bankruptcies Genesis will cause in its turn.
