Gemini Tops Genesis Creditors List With $766 Million Claim, Winklevoss Teases DCG Lawsuit

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Summary:

• Genesis filed for bankruptcy protection late on Thursday revealing $3.6 billion owed to the top 50 creditors.
• Top unsecured claimants included Gemini, Babel Finance, VanEck, and Cumberland among others.
• Gemini President Cameron Winklevoss once again threatened legal against Genesis’s parent company DCG and CEO Barry Silbert. 

The Winklevii Founded Gemini was named a top creditor in a list of unsecured claims published by bankrupt crypto lender Genesis Global. Genesis filed for bankruptcy late on Thursday roughly two months after the imposition of the crypto exchange FTX. 

According to the court filing submitted in the Southern District of New York, Genesis owes over $3.6 billion to its top 50 unsecured creditors. The crypto lender also confirmed between $1 billion and $10 billion in assets and liabilities. The filing covers Genesis Global Holdco LLC, Genesis Asia Pacific Pte. Ltd, and Genesis Global Capital LLC which served as the partner firm for Gemini’s beleaguered Earn product. 

Thursday’s unsecured claims list noted that Gemini is owed $766 million. Two other creditors are owed a combined $692.2 million but both names were redacted in the court filing. Other members of the top 50 creditors category include Mirana Corp (owed $151 million), Babel Finance (owed $150 million),  and VanEck New Finance Income Fund (owed $53 million) to name a few. 

The DCG subsidiary said the late filing was a “strategic action to achieve a global resolution to maximize value for all clients and stakeholders”. The filing comes a few months after the fall of FTX and uncertainty surrounding the lenders’ parent company Digital Currency Group (DCG)

Winklevoss Threatens Lawsuit Against Genesis Parent Company DCG

Gemini President Cameron Winklevoss threatened to sue the crypto lenders’ parent company DCG and its CEO Barry Silbert for lying to investors about the company’s financial health. Cameron tweeted on Friday that the bankruptcy filing “does not insulate Barry, DCG, and any other wrongdoers from accountability”. 

Both parties engaged embroiled in a public spat ever since Genesis Global Capital paused withdrawals, essentially cutting off liquidity for Gemini’s Earn program and its 340,000+ users. The crypto lender supposedly buckled amid back-to-back exposure to crippled entities Three Arrows Capital and Sam Bankman-Fried’s FTX exchange. 

Furthermore, Thursday’s filing raises questions regarding Grayscale’s Bitcoin Trust (GBTC) product, another entity owned by DCG. Crypto participants have expressed worries that bankruptcy proceedings could have a domino effect on the company’s massive BTC holdings which exceed 600,000 at press time. 

Source : Ethereum World News

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