Genesis Global Owes Its Top 50 Creditors Over $3.5B

Genesis Global, the renowned crypto brokerage company recently filed for Chapter 11 Bankruptcy on January 19 to help the firm in restructuring its business in order to provide value for all of its users.

The bankruptcy filing revealed a list of 50 top creditors that the firm owes a total sum amounting to over $3.5 billion, and was submitted to the U.S. bankruptcy court of the Southern District of New York. 

Based on the filing, it appeared that Gemini Trust Company, a digital exchange platform that permits users to trade cryptocurrencies is one of the top well-known creditors and lending partners. Effective January 8, the Winklevoss exchange terminated the Earn program and required Genesis to return all assets outstanding.

Gemini has done everything within its capacity to recoup the $900 million loan it made to the cryptocurrency broker and its parent company, Digital Currency Group (DCG). The exchange still went as far as establishing a creditors’ committee to recover the funds, yet no positive result.

Likewise, Mirana Corp, an early-stage investment firm dedicated to supporting companies has about $151 million while Babel Finance has a $150 million loan with Genesis. Other prominent creditors include Van Eck, Abra, and Decentraland, amongst many others. However, there are about two creditors who have their identities hidden but are owed $462.2 million and $230 million respectively.

Genesis Global and its many woes

Unlike the fall of FTX, Genesis’s bankruptcy did not come as a shock to the crypto industry at large as everyone already saw the signs from the onset. 

As of November 2022, the crypto company suspended withdrawal on its platform due to the implosion of the FTX Derivatives Exchange, and up till now, the firm has been wallowing in problems beyond its control.

Meanwhile early this year, the defunct company claimed that it is working on paying off its debt to the Winklevoss brothers’ company and resuming its activities following its suspension of withdrawals. Although the firm’s effort to invent solutions and initiatives to reduce cost and push efficiency in all its enterprises did not entirely solve the issues it had.

The crypto lender’s financial crisis also prompted the layoffs of about 30% of its staff spread across different sections of the company. This happens to be the latest spat of layoffs by the firm.