The Financial Times reported on Saturday that crypto broker Genesis and its parent company Digital Currency Group (DCG) owe $900 million to customers of the Winklevoss twins' cryptocurrency exchange Gemini.
According to the newspaper, Gemini is attempting to recover the funds after Genesis was caught off guard by the failure of Sam Bankman-FTX Fried's crypto group last month.
Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm, according to Digital Currency Chief Executive Barry Silbert.
According to the report, Gemini, which operates a crypto lending product in collaboration with Genesis, has now formed a creditors' committee to recoup the funds from Genesis and its parent DCG.
Genesis and Gemini made no comments on the matter.
According to three people familiar with the situation, Genesis has hired investment bank Moelis & Company to investigate various options, including bankruptcy.
Last month, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of cryptocurrency exchange FTX.
On November 11, cryptocurrency trading platform FTX filed for bankruptcy in the United States, in the highest-profile crypto meltdown to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
(Source:www.latestly.com)
According to the newspaper, Gemini is attempting to recover the funds after Genesis was caught off guard by the failure of Sam Bankman-FTX Fried's crypto group last month.
Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm, according to Digital Currency Chief Executive Barry Silbert.
According to the report, Gemini, which operates a crypto lending product in collaboration with Genesis, has now formed a creditors' committee to recoup the funds from Genesis and its parent DCG.
Genesis and Gemini made no comments on the matter.
According to three people familiar with the situation, Genesis has hired investment bank Moelis & Company to investigate various options, including bankruptcy.
Last month, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of cryptocurrency exchange FTX.
On November 11, cryptocurrency trading platform FTX filed for bankruptcy in the United States, in the highest-profile crypto meltdown to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
(Source:www.latestly.com)