- Meanwhile, another crypto exchange Gemini is trying to recover the funds after Genesis was wrongfooted by last month’s failure of Sam Bankman-Fried’s FTX crypto group.
Crypto broker Genesis and its parent company Digital Currency Group (DCG) owe customers of the Winklevoss twins’ crypto exchange Gemini $900 million, news agency Reuters quoted a report by Financial Times.
The report further added that another crypto exchange Gemini is trying to recover the funds after Genesis was wrongfooted by last month’s failure of Sam Bankman-Fried’s FTX crypto group.
ALSO READ: After FTX collapse, are cryptos likely to see tougher rules?
“Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm,” Digital Currency Chief Executive Barry Silbert told shareholders on October.
Gemini has now formed a creditors’ committee to recoup the funds from Genesis and its parent DCG. The firm runs a crypto lending product in partnership with Genesis.
Investment bank Moelis & Company has been hired by Genesis to explore options including a potential bankruptcy, the New York Times reported last month.
Genesis Global Capital suspended customer redemptions in its lending business last month, citing the sudden failure of crypto exchange FTX.
Crypto trading platform FTX filed for bankruptcy protection in the United States on Nov. 11 in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
With Reuters reports.
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