{"id":72826,"date":"2023-01-20T10:16:42","date_gmt":"2023-01-20T08:16:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72826"},"modified":"2025-09-09T10:32:58","modified_gmt":"2025-09-09T07:32:58","slug":"genesis-part-of-digital-currency-group-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/genesis-part-of-digital-currency-group-files-for-bankruptcy\/","title":{"rendered":"Genesis, part of Digital Currency Group, files for bankruptcy"},"content":{"rendered":"<p>Genesis Global Capital, the crypto-lending platform within the Digital Currency Group (<span data-descr=\"Digital Currency Group\" class=\"old_tooltip\">DCG<\/span>), filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.<\/p>\n<p>The petitions were filed by Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital.<\/p>\n<p>The filing shows more than 100,000 creditors, with assets and liabilities ranging from $1 billion to $10 billion. The subsidiaries&#8217; figures vary between $100 million and $500 million.<\/p>\n<p>Top management expects that the restructuring will yield funds for unsecured creditors.<\/p>\n<p>Other Genesis entities involved in derivatives, spot trading, and custody, as well as Genesis Global Trading, were not included in the filing and continue client trading operations.<\/p>\n<p>Genesis Global Capital has not recovered from the fallout of the <a href=\"https:\/\/u1f987.com\/en\/news\/british-virgin-islands-court-orders-liquidation-of-three-arrows-capital\">hedge fund Three Arrows Capital<\/a> default in June and the <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"><strong> <\/strong>FTX collapse<\/a> in November 2022. If in the first case the parent DCG provided support totaling $1.1 billion, the second\u2014attempts to raise external financing\u2014proved unsuccessful.<\/p>\n<p>In early 2023, the platform cut 30% of its staff.<\/p>\n<p>As of November, platform management did not rule out bankruptcy as one of the scenarios proposed by the hired investment bank Moelis &#038; Company.<\/p>\n<p>At the end of 2022 creditors sought to avoid a chaotic and costly bankruptcy process. The day before, it emerged that the firm would proceed with this step.<\/p>\n<p>According to media reports, Genesis\u2019 debt total reached $3 billion. This amount includes claims by Gemini clients of $900 million.<\/p>\n<p>The documents indicate Genesis owes the Winklevoss brothers&#8217; exchange $765 million. Other major creditors include Mirana (BitDAO and Bybit), Moonalpha (Babel Finance), Coincident Cap, Decentraland, VanEck, Abra, Cumberland and the Stellar Foundation.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">Creditors:<br \/>\u2022 Gemini: $765.9M<br \/>\u2022 Mirana ( BitDAOand Bybit): $151.5M<br \/>\u2022 Moonalpha (Babel Finance): $150M<br \/>\u2022 Coincident Cap: $112M<br \/>\u2022 Decentraland: $55m<br \/>\u2022 VanEck: $53m<br \/>\u2022 Abra: $30m<br \/>\u2022 Cumberland: $18.7m<br \/>\u2022 Stellar Foundation: $13.2m <a href=\"https:\/\/t.co\/DM1Y7NJDmL\">pic.twitter.com\/DM1Y7NJDmL<\/a><\/p>\n<p>\u2014 PeckShieldAlert (@PeckShieldAlert) <a href=\"https:\/\/twitter.com\/PeckShieldAlert\/status\/1616319365410074624?ref_src=twsrc%5Etfw\">January 20, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The amount owed to Decentraland exceeds the project\u2019s treasury assets.<\/p>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">January 20, 2023 | 17:54<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>According to the documents, DCG has obligations to Genesis totaling $1.65 billion.<\/p>\n<p>The debt includes a $575 million loan due in May 2023, and a $1.1 billion note due in 2032.<\/p>\n<\/div>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Bankruptcy is a decisive step on the path to us being able to recover the assets,&#8221;<\/em> said Gemini co-founder Cameron Winklevoss.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">1\/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.<\/p>\n<p>\u2014 Cameron Winklevoss (@cameron) <a href=\"https:\/\/twitter.com\/cameron\/status\/1616298056097624064?ref_src=twsrc%5Etfw\">January 20, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Winklevoss cited DCG and founder Barry Silbert\u2019s refusal to offer a &#8220;fair deal.&#8221; He threatened to sue the holding company and its CEO if it does not comply. The executive noted that the Chapter 11 filing would allow &#8220;uncovering the machinations&#8221; for which Digital Currency Group and Silbert &#8220;are responsible.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">4\/ Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.<\/p>\n<p>\u2014 Cameron Winklevoss (@cameron) <a href=\"https:\/\/twitter.com\/cameron\/status\/1616302996425699328?ref_src=twsrc%5Etfw\">January 20, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Winklevoss pledged to use every tool at hand in the bankruptcy court to maximise recovery for Earn users.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">7\/ Meanwhile, we will use every tool available to us in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court\u2019s jurisdiction.<\/p>\n<p>\u2014 Cameron Winklevoss (@cameron) <a href=\"https:\/\/twitter.com\/cameron\/status\/1616302999906955265?ref_src=twsrc%5Etfw\">January 20, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Earlier, Bernstein, as options to address Genesis\u2019 problems, proposed raising capital, selling non-core assets, and preserving the holding\u2019s digital-asset manager Grayscale or liquidating <span data-descr=\"Grayscale Bitcoin Trust\" class=\"old_tooltip\">GBTC<\/span>.<\/p>\n<p>DCG is considering selling its subsidiary CoinDesk.<\/p>\n<p>Follow ForkLog\u2019s bitcoin news on our Telegram \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Genesis Global Capital, the crypto-lending platform within the DCG holding, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.<\/p>\n","protected":false},"author":1,"featured_media":72827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,184,1380],"class_list":["post-72826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-dcg","tag-genesis-global-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"32","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=72826"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72826\/revisions"}],"predecessor-version":[{"id":72828,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72826\/revisions\/72828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/72827"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=72826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=72826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=72826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}