- Genesis suspended customer redemptions in November last year after FTX collapsed
- Gemini claims Genesis owes it $900 million for Gemini Earn lending product
Cryptocurrency lending platform Genesis Global Capital is planning to file for bankruptcy this week, it emerged from a Bloomberg News report based on interviews with insiders, Reuters wrote.
The company suspended customer redemptions in November last year after FTX collapsed, and a bankruptcy filing had been expected for some time.
BlockFi and Core Scientific also collapsed
Among the victims of FTX’s grandiose fall were industry leaders like crypto lender BlockFi and publicly traded mining company Core Scientific Inc., one of the biggest in its segment in the United States. Both have filed for bankruptcy protection.
No agreement prospects with creditors
The report added that Genesis, its creditors, and parent company Digital Currency Group have exchanged a number of proposals, but have not reached an agreement so far. Creditor groups are being advised by Proskauer Rose and Kirkland & Ellis.
Genesis’ dispute with Gemini
Genesis is also stuck in a high-profile dispute with Gemini, the crypto exchange founded by twins Cameron and Tyler Winklevoss. The exchange launched Gemini Earn, a crypto lending product, in collaboration with Genesis. Gemini claims Genesis owes it $900 million for Earn.
Recently, the US Securities and Exchange Commission (SEC) charged Gemini and Genesis with illegal securities sales of the crypto lending product. Hundreds of thousands of investors have lost their money.
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