Troubled cryptocurrency lender Genesis is reportedly confident it can emerge from bankruptcy proceedings in just a few months.
according to the new report According to Reuters, Genesis attorney Sean O’Neill said the troubled cryptocurrency firm could settle its disputes with creditors this week and resume operations by late May. increase.
Genesis, a subsidiary of billionaire Barry Silbert’s digital currency group, is looking to auction various assets with the goal of ending bankruptcy by May 19, according to Reuters.
According to reports, Genesis has been in negotiations with its creditors for two months and stands ready to mediate if necessary. Bryan Rosen, an attorney representing Genesis creditors, said Genesis and its lenders are “very close” to an agreement.
The company also said it plans to hold an auction to sell some of its assets.
According to voluntary bankruptcy filings filed earlier this week, Genesis has 50 of its largest creditors, including hedge fund manager Van Eck, cryptocurrency exchange Gemini and Stellar Development Foundation, creator of payments platform Stellar (XLM). owes about $3.8 billion to
The document reveals that the highest amount owed to a single creditor is $765 million owed to crypto exchange platform Gemini. I created a program. This allowed retailers to lend out virtual assets and earn interest.
Genesis owes Gemini’s Earn Program members $765 million, according to court documents.
Genesis’ troubles began after crypto hedge fund Three Arrows Capital collapsed in 2022, leaving it unable to repay a large loan. That problem was exacerbated when prominent crypto exchange FTX, which held some of his assets, dissolved in November.
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