New documents reveal that troubled cryptocurrency lender Genesis owes billions of dollars to its 50 largest creditors.
In a recent voluntary bankruptcy filing, the crypto firm leak The developer of XRP rival Stellar owes $3.8 billion to its biggest creditors, including hedge fund manager VanEck and the Stellar Development Foundation (XLM).
Other prominent creditors include crypto investment firm Digital Finance Group, crypto exchange platform Coinhouse and crypto lender Gemini. Previously, Genesis and Gemini worked together to create Gemini’s Earn program. This allowed retail investors to lend their digital assets and earn interest.
According to the documents, Genesis owes about $765 million to members of Gemini’s Earn program.
Genesis, a subsidiary of Barry Silbert’s Digital Currency Group, initially submitted Bankruptcy on January 19th.
“Genesis Global Holdco, LLC (“GGH”) and two of its lending operating subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.
office Ran Last year, crypto hedge fund Three Arrows Capital got into trouble when it filed for bankruptcy and experienced liquidity problems. The challenges for crypto brokers were made worse by the downfall of FTX.
As Genesis interim CEO Deller Islim said in a press release,
“We have made significant progress in improving our business plan to resolve liquidity issues caused by recent extraordinary challenges in the industry, including the default of Three Arrows Capital and the bankruptcy of FTX. However, restructuring in court is the most effective way to protect assets and produce the best possible outcome for all of Genesis’ stakeholders.”
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