Stellar Foundation Scratched by Genesis Bankruptcy with $13 M Claim

The Stellar Development Foundation, a nonprofit organization founded in 2014 to push development on the Stellar blockchain, was registered with one of the largest creditors of Genesis, the crypto lending company which filed for bankruptcy on January 19.
The company has a purport for $13 million against Genesis, as per the bankruptcy filings.

The company gave a statement to a reliable media source, in which it accepted that it gave a loan of about $13 million to Genesis in the last year but referred to the sum as “irrelevant” in comparison to the rest of its holdings.

“The significant purports portray an irrelevant part of our complete treasury and also it does not influence our work in any other way,” as per the Stellar Development Foundation representative.

As per the company’s website, the “Stellar Development Foundation recently keeps 30 billion XLM to be used for fostering and building up Stellar.” At recent prices, Stellar’s holdings of its citizen XLM token places the paper worth of its holdings over $200 million.

Nevertheless, the company purports it was battered by the Genesis fiasco comparatively unharmed, the mossasment of Space Capital’s asset without a prescription crypto lending desk emphasizes just how extensive the pollution have a row may be.

Also, one of the biggest Genesis creditors disclosed on January 19th that bankruptcy filings were pension funds of Fairfax County, Virginia, and MoonAlpha Finance, the team after Babel Finance, which is owed almost $150 million.

The bankruptcy filing

The company has filed bankruptcy to the Bankruptcy court of the United States for the Southern District of New York which calculated that it has over 100,000 creditors, that its assets were almost $5.3 billion, and debts, having intercompany accountabilities, were of about $5.1 billion as reported on November 30.

As reported by the Coinrepublic, Genesis made a plan to overcome the bankruptcy by May 19, as per the court filings. It will attempt to sell its assets at an auction in the coming three months to give the money back to the creditors, per the court filings.

The parent company of Genesis Global Capital, Genesis Global Holdco, and Genesis Asia Pacific has also filed for bankruptcy. Genesis Global Holdco made a statement in which it publicized that it will regard a potential scale or stock-related transaction, to give creditors and that it had $150 million in cash to back the reorganization.