On a recent edition of Unchained’s “The Chopping Block,” managing partner at Dragonfly Capital Haseeb Qureshi spoke about the potential repercussions of Genesis going out of business.
https://twitter.com/twobitidiot/status/1601920009290358785
In reference to “The Chopping Block,” an Unchained episode that aired on December 3, Qureshi said:
“It looks like there was a lot of funny busy in the accounting at genesis very very high level”
Qureshi claims that the $1.1 billion promissory note that the Digital Currency Group (DCG) has to Genesis may be “callable” in the case of collapse, obliging DCG to pay the whole amount of the note right once.
Qureshi also covered DCG’s estimated $2.1 billion purchase of Genesis’ “bad debt” from Three Arrows Capital (3AC).
https://twitter.com/twobitidiot/status/1601920512690618369
Qureshi talked about two possible outcomes if Genesis filed for bankruptcy.
First, “Genesis files [for bankruptcy] and then pushes DCG into bankruptcy,” starting a difficult bankruptcy process.
The second possibility is that Genesis fails and the note is ultimately sold at an auction for less than it was originally worth, but DCG is miraculously saved.
In his final statement, Qureshi said, “it appears very, very probable” that Genesis will either have to declare bankruptcy or undergo a restructuring in which creditors would have to consent to lower claim amounts at Genesis in order to avoid bankruptcy.
To read our blog on “Genesis, a cryptocurrency broker, owes Gemini’s clients $900 million,” click here
