On Monday, Kaplan Fox & Kilsheimer LLP, a leading national law firm, activated a full-scale investigation against Genesis global capital and Gemini Trust Company, LLC; the firm is investigating potential claims on behalf of customers.
The law firm, with its operational offices in San Francisco, New York, and New Jersey and Chicago, has also provided its email address and phone number for victims/customers wishing to discuss the investigations.
The fallout of Genesis Global Trading and Gemini Earn
Despite having an institutional client base with a total active loan of $2.8 billion, the lending arm of Genesis Global, in the wake of the FTX collapse on November 16, temporarily suspended all redemption and disbursement of new loans.
Barry Silbert, Chief Executive Officer of Grayscale, a crypto trading company, and owner of Genesis Global, in a November 23 letter, revealed to its shareholders that it had taken a $575 million loan from its subsidiary, Genesis Global, to fund investment opportunities and repurchase stock from non-employee shareholders. The due date for repayment will be May 2023.
Before now, Gemini Earn update has been acting as an agent for Earn users, and its negotiations have been primarily with Genesis Global and its parent company, Digital Currency Group (DCG).
Houlihan Lokey, a financial advisor from the Gemini side, on December 17, claimed that it had initiated concrete plans to resolve all the pending liquidity issues Genesis and DCG, and the discussions are currently ongoing.
Source: https://crypto.news/kaplan-fox-starts-full-scale-investigation-against-genesis-global-capital/