While Genesis has officially filed for bankruptcy, the company owes at least $3.4 billion to its various creditors. Among them, Gemini wishes to take legal action if an agreement is not reached in the context of the conflict relating to the Earn product.
Genesis bankruptcy leaves many debts to pay off
After long twists and increasingly solid rumors, Genesis has officially filed for Chapter 11 of the United States Bankruptcy Law. While we’ll definitely have heard a lot about this law in the space of a year, the company has many creditors to repay, as Bloomberg correspondent Sonali Basak shared:
*CRYPTO FIRM GENESIS FILES FOR CHAPTER 11 BANKRUPTCY IN SDNY
—Sonali Basak (@sonalibasak) January 20, 2023
The document shows the 50 companies that Genesis owes the most money to, and Gemini tops the list with $765 million. according to the shared data.
However, they are far from being the only ones, even if it is the largest debt. Portfolio manager VanEck, for example, appears in the list at $53.1 million. It will therefore be interesting to follow how its products will behave exposed to cryptocurrenciesdepending on the nature of the partnership with Genesis.
On the French side, we can also quote just over 14.8 million due to Coinhouse.
According to our colleagues at Reuters, Genesis would thus be liable in all for 3.4 billion dollars.while its parent company, Digital Currency Group (DCG) owes it more than 1.65 billion.
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Gemini wants to take legal action
After several settling of accounts in public, Cameron Winklevoss, the co-founder of the Gemini cryptocurrency exchange, announces without great surprise that his company could take legal action soon :
1/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.
—Cameron Winklevoss (@cameron) January 20, 2023
Cameron Winklevoss is particularly targeting Barry Silbert, the CEO of Digital Currency Group, with whom he has not been able to find an agreement to help users of its Earn product :
“We are preparing to take direct legal action against Barry, DCG and others who share responsibility for the fraud that harmed the more than 340,000 users of Earn […]. Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG shortly. »
Since the events that led to the crash of the Terra (LUNA) ecosystem, a particularly deleterious chain reaction has been set in motion for many players in the ecosystem. While it is now FTX that leaves new victims in its wake, it is now a question of how many bankruptcies Genesis will cause in turn.
👉 Related – SEC Charges Gemini and Genesis for Retail Investor Activities
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