Genesis Bankruptcy Will Be Quick and Efficient, Says Interim CEO

2023-1-21 22:29

Genesis Global Holdco LLC’s interim CEO Derar Islim assured creditors like Gemini that the firm’s bankruptcy will proceed “quickly and efficiently.”

Writing to investors shortly after Genesis filed for Chapter 11 bankruptcy in the U.S., Islim said in a letter seen by the Block, “Our goal is to move through the Chapter 11 process as quickly and efficiently as possible while reaching the best outcome and emerging well-positioned for the future.” Islim assumed leadership of the lending firm in August 2022 after the resignation of former CEO Michael Moro.

Genesis Owes Top 50 Creditors $3.6 Billion

Genesis filed for Chapter 11 bankruptcy on Jan. 20, 2023, after suffering a massive liquidity crunch after hedge fund Three Arrows Capital defaulted on a $2.4 billion loan. It suspended withdrawals and loan originations on Nov. 16, 2022. 

According to the filing, the company has more than 100,000 creditors. It reportedly owes its top 50 unsecured creditors around $3.6 Billion. 

Genesis owes Gemini Earn customers an estimated $900 million, Amsterdam-based exchange Bitvavo about $303 million, Moonalpha Financial Services $150 million, and Plutus Lending $30 million. Other claimants include VanEck’s New Finance Income Fund and crypto trading firm Cumberland. While Genesis filings pin Cumberland’s claim to about $18 million, the crypto trader claims that Genesis owes it about $46,000.

Genesis’ bankruptcy filing today reflects misleading and incorrect information, and as part of our commitment to transparency, we are providing more details. pic.twitter.com/FbXlQRAsoE

— Cumberland (@CumberlandSays) January 20, 2023

Before it filed for bankruptcy, Genesis transferred around $150 million to several central exchanges, including Binance, Kraken, and Coinbase, which could allow itself to operate while undergoing bankruptcy.

Before Genesis Global filed for bankruptcy protection, the Genesis Trading OTC address transferred:

– 50,000 $ETH($77.6M) #Coinbase;
– 20,000 $ETH($31M) to #Bitstamp;
– 5,000 $ETH($7.76M) and 3.9M $USDT to #Kraken;
– 7.7M $FTM ($2.35M) to #Binance;
– 36M $USDC to new address. pic.twitter.com/cMMKpLdVJs

— Lookonchain (@lookonchain) January 20, 2023 Who’s to Blame for Gemini Earn Fiasco?

Gemini co-founder Cameron Winklevoss has threatened legal action against the Genesis owner Digital Currency Group (DCG) and its CEO Barry Silbert if Gemini customers do not get fair treatment from the bankruptcy proceedings. 

DCG hit back, calling his threat “another publicity stunt from Cameron Winklevoss to deflect blame from himself and Gemini.”

Genesis reportedly owes over 340,000 Gemini Earn customers about $900 million. Earn customers gave their assets to Genesis to generate yield. In its capacity as an agent, Gemini took up to a 4.29% cut of the returns.

According to Axios, Gemini confirmed in response to an SEC lawsuit that customers knew the risk of “TOTAL LOSS.”

However, the one Earn customer’s experience with Gemini’s customer service referred to FDIC insurance, allaying any illiquidity fears.

“All fiat currency held by Gemini to redeem your GUSD is held by our partner financial institutions in a secure account and is eligible for FDIC insurance,” Gemini’s customer service told Peter Chen, who invested around $18,000 in the account. GUSD is Gemini’s stablecoin, while FDIC insurance refers to Federal Deposit Insurance. FDIC insurance is a safety net that protects depositors against a bank-run scenario. 

While its registration with the New York State Department of Financial Services compels it to keep a certain capital requirement, Gemini is not regulated like a bank. Hence, customers risked an illiquidity scenario when they deposited their money. 

Smaller investors like Chen could wait a long time to receive their money. The $1.1 billion promissory note maturing in 2032 Silbert promised to help Genesis’s liquidity is not callable. A further $526 million that DCG must pay Genesis by May 2023 is also not guaranteed to restore Gemini customers any time soon.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Genesis Bankruptcy Will Be Quick and Efficient, Says Interim CEO appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Genesis Vision (GVT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -0.03 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 1.2838 (-100%)

genesis ceo bankruptcy says efficient interim quick

genesis ceo → Результатов: 89


Майкл Моро: Падение биткоина остановится на отметке $3 000

CEO крипто-трейдинговых компаний Genesis Trading и Genesis Capital Trading Майкл Моро считает, что цена биткоина может найти свой минимум около уровня $3 000. В разговоре с CNBC в эту пятницу он допустил, что курс криптовалюты может опуститься ещё на 30%.

2018-11-24 19:02


CEO Genesis Trading: Курс биткойна снизится до $3000

CEO криптовалютных торговых компаний Genesis Trading и Genesis Capital Trading Майкл Моро считает, что минимум стоимости биткойна в текущем году может составить $3 000. В интервью с CNBC в эту пятницу Моро озвучил мнение, что курс первой криптовалюты может упасть ещё на 30%.

2018-11-24 16:35


CEO Genesis Trading: Биткоин найдет свое дно на $3000

Исполнительный директор Genesis Trading Майкл Моро считает, что главная криптовалюта найдет своё дно около уровня $3000. В ходе интервью на телеканале CNBC Моро сказал, что биткоин долго не продержится выше $4000, так как дополнительное медвежье давление на цену накладывают поспешно продающие свои активы инвесторы, пришедшие еще до 2017.

2018-11-24 14:43


CEO платформы Genesis Trading раскрыл истинную причину обвала биткоина

Генеральный директор внебиржевой криптовалютной платформы Genesis Global Trading (GGT) Майкл Моро заявил, что главной причиной падения биткоина стал выход крупных игроков с рынка. Выступая перед журналистами, эксперт отметил, что инвесторы неожиданно начали продавать биткоины, которые они купили в начале 2017 года.

2018-11-21 16:58


Genesis Mining CEO Marco Streng: Trustless Crypto Cloud Mining Needs to be Standard

Genesis Mining’s Marco Streng: Cloud Mining Needs to be Trustless Crypto mining is getting more difficult by day, but those with higher efficiencies find it a great opportunity to get good returns. In an interview with Bitsonline, the founder of Genesis Mining, Marco Streng, talked about cloud mining and its challenges, saying that it needs to be ‘trustless’. …

2018-10-11 13:36


Глава Genesic Trading: медведи выдыхаются и отметка в 10000 $ вполне вероятна

Глава Genesis Trading CEO заявил, что реакция рынка на отказ SEC одобрить биткойн-ETF показывает, что медведи уже выдыхаются, а биткойн может вскоре подняться до отметки в 10000 долларов. За последние дни биткойн преодолел отметку в 7000 долларов, впервые за 3 недели и без видимых катализаторов роста, что заставило многих интересоваться причинами восстановления рынка.

2018-8-30 18:39