The list of embattled crypto lending firm Genesis Global Trading creditors just got longer with the addition of the United States Securities and Exchange Commission (SEC), the U.S.
Attorney’s office for the Southern District of New York and the Internal Revenue Service. According to its latest bankruptcy hearing, a number of its creditors’ names have been redacted to include some entities.
Norton Rose Fulbright US LLP, a law firm, and the Stellar Development Foundation, a nonprofit have been included alongside government agencies.
Genesis Files for Chapter 11 Bankruptcy
Genesis Global Trading filed for Chapter 11 bankruptcy protection in a U.S. Bankruptcy Court of the Southern District of New York last week.
According to Genesis, the decision was made to provide value for its customers and Gemini Earn users by preserving its assets and moving its business forward. The bankruptcy filing cuts across Genesis Global Holdco, LLC (“GGH”) and two of its lending business subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte.
At the time, Genesis claimed that it had up to $150 million in cash which it intended to use as ample liquidity to run its business operation and handle the bankruptcy proceedings. Markedly, the Genesis bankruptcy follows that of BlockFi, FTX, Three Arrows Capital, Celsius Network and a host of others. The troubled firm is optimistic that by May, it would have emerged from its filed bankruptcy with all its disputes resolved and creditors settled.
Genesis attorney Sean O’Neal noted that the firm has a high level of confidence and would probably settle with creditors this week. “Sitting here right now, I don’t think we’re going to need a mediator,” he explained. “I’m very much an optimist.”
The Digital Currency Group (DCG) subsidiary has been struggling with financial troubles since the implosion of FTX. At first, Genesis suspended lending withdrawal on its platform in Mid-November. Thereafter, Gemini Exchange called out the crypto brokerage firm for failure to provide assets which belong to Gemini Earn users.
Cameron Winklevoss ended up sending a sardonic letter to Barry Silbert, emphasizing his negligence in ensuring that the affected Earn product users get a refund. Just before Genesis filed for bankruptcy, Gemini ended up terminating its Master Loan Agreement (MLA) with Genesis and stopped the Earn project.