Breaking: Gemini Exchange Owed Nearly $1 Billion By Genesis, DCG
Gemini Genesis News: The latest victim of the FTX contagion is Crypto exchange Gemini. This follows adverse effects for BlockFi and Genesis as well as the Digital Currency Group (DCG). BlockFi, a crypto lender, filed for chapter 11 bankruptcy earlier due to the market effects of the FTX meltdown. It is not clear how many other companies will be affected by the FTX meltdown, but it is important to protect the interests of Gemini customers. According to recent reports, Genesis trading owes the crypto exchange nearly $1 billion.
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Gemini Customers At Risk
According to reports, the Winklevoss brothers are working to recover the funds. According to a Financial Times report $900 million owed to Gemini exchange users Genesis Trading was hit hard by a liquidity crisis that led to the collapse of the crypto empire of Sam Bankman-Fried. Cameron Winklevoss, founder of Gemini, is working to help the company recover.
According to the report, the crypto exchange had a creditors committee responsible for recovering user funds. The Singapore authorities initiated an internal investigation into the state-owned Temasek’s investment of FTX. BlockFi, a bankrupt lender, stated that it will recover all dues owed by its counterparts, including FTX. As a result of the FTX contagion, the lender initiated restructuring proceedings on November 28.
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Is Genesis Bankruptcy Avoidable
The company’s management hired restructuring attorneys to stop it from filing for bankruptcy proceedings amid speculation of a Genesis bankruptcy. To save itself from the crisis, the crypto brokerage firm had intensified its efforts to raise emergency funds of $500 million. According to reports, Genesis had hired Moelis & Company, an investment bank, to look into alternative options. This could include bankruptcy. Genesis stopped revolving loans and commenced new loans after the FTX crash in November.
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