According to a news source cited in a Financial Times article, cryptocurrency broker Genesis and its parent firm Digital Currency Group (DCG) owe users of the Winklevoss twins’ cryptocurrency exchange Gemini $900 million.
According to the article, Gemini, another cryptocurrency exchange, is attempting to recover the assets after Sam Bankman-FTX Fried’s crypto group’s bankruptcy last month caught Genesis off guard.
Genesis Trading’s crypto lending division is owed $575 million by venture capital firm Digital Currency Group, which also owns cryptocurrency asset management Grayscale and Genesis Trading, CEO Barry Silbert revealed to shareholders in October.
As a result, Gemini established a committee of creditors to pursue payment from Genesis and DCG, Genesis’ parent company. In collaboration with Genesis, the company offers a cryptocurrency loan service.
The New York Times reported last month that investment firm Moelis & Company has been retained by Genesis to investigate options, including a potential bankruptcy.
The abrupt demise of the cryptocurrency exchange FTX was cited as the reason Genesis Global Capital last month froze client redemptions in its lending operation.
In the highest-profile crypto meltdown to date, cryptocurrency trading site FTX filed for bankruptcy protection in the US on November 11 after users withdrew billions from the platform in just three days and rival exchange Binance abandoned a rescue plan.
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