The crypto lender that did business with FTX filed for Chapter 11 bankruptcy protection and is facing more legal trouble from the Winklevoss twins.
It was only a matter of time before cryptocurrency lender Genesis Trading filed for bankruptcy following an ongoing battle with the Winklevoss twins.
Genesis filed for Chapter 11 bankruptcy protection on Thursday in New York, with over 100,000 creditors listed. Bankruptcy documents show that the crypto company’s liabilities range from $1.2 billion to $11 billion. Genesis is a subsidiary company under the Digital Currency Group (DCG), a crypto conglomerate that also operates CoinDesk, Foundry, Grayscale Investments, TradeBlock, and Luno.
“We look forward to advancing our dialogue with DCG and our creditors’ advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future,” Genesis interim CEO Derar Islim said in a statement.
The bankruptcy filing comes two months after Genesis entered a public feud with Gemini, the crypto exchange Cameron and Tyler Winklevoss founded. Earlier this week, we laid out the details of the Gemini-Genisis feud, which started after the twin brothers accused the crypto lender of owing its customers more than $900 million tied up in a program they launched together called Gemini Earn. The program allows customers to earn interest on their virtual currency holdings and promises they could earn up to 8% in annual interest. Genesis halted the program in December when it faced potential insolvency during FTX’s downfall.
Since Genisis announced its filing for bankruptcy, Gemini CEO Cameron Winklevoss expressed interest in filing a lawsuit against DCG and its CEO Barry Silbert.
“Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently,” Cameron said in another string of tweets. “We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”
The crypto lender joins a growing list of fallen companies that did business with FTX, including crypto firm BlockFi.
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