Genesis has accrued a staggering $3.5 billion debt that it owes to its top 50 creditors, as revealed in its Chapter 11 bankruptcy filing.
According to the filing, Genesis’s biggest debt is $765.9 million owed to Gemini Earn users. Although Cameron Winklevoss of Gemini estimated that in January Genesis was indebted to over 340,000 Gemini Earn users at a total of nearly $900 million.
Genesis’ Chapter 11 filing
After FTX collapsed in November 2022, Genesis struggled to find liquidity and ultimately filed for bankruptcy on January 19th. The bankruptcy filing withheld the names of more than half of its top-ranking creditors, including three major ones who are collectively owed over $1 billion.
Mirana Corp, a crypto fund that launched legal action against Three Arrows Capital for an unfulfilled loan agreement after the business declared bankruptcy, is Genesis’ fifth-largest creditor. However, the amount due to Mirana from Genesis totals $151.5 million.
Despite its impressive list of creditors, Genesis has accumulated a debt exceeding $150 million. Babel Finance (operating as Moonalpha Financial Services), crypto savings firm Donut, and VanEck New Finance Income Fund are some critical names amongst the company’s lenders. In particular, Babel is owed over $78 million, while Donut and VanEck have been handed bills totaling more than $53.1 million each.
In addition to its existing debt, Genesis faces an additional deficit of $18.72 million to the trading enterprise Cumberland DRW and a whopping payment of $20 million due to Big Time Studios—the gaming organization established by Decentraland co-founder Ari Meilich.
Source: https://www.cryptopolitan.com/genesis-owes-over-3-5-billion-to-top-50-creditors/