Home | Breaking | Genesis Creditor Groups’ Loans Tallied At $1.8 Billion And Likely To Swell

Genesis Creditor Groups’ Loans Tallied At $1.8 Billion And Likely To Swell

Table of Contents

The lending firm, Genesis, has been entangled in the FTX collapse, as a result confronting $1.8 billion and counting with its creditor groups’ loans. Genesis has been exploring solutions to shores up its lending business’ overall liquidity and addresses clients’ needs.

Genesis Creditor Groups’ Loans Tallied At $1.8 Billion

Based on the CoinDesk report, a person familiar with the situation stated that $1.8 billion of customer loans are currently locked on the trading and lending platform, Genesis and the figures look like it will continue to increase.

According to the Financial Times’ previous report, Genesis owed about $900 million to a crypto exchange, Gemini, which the Winklevoss brothers own. Gemini had used Genesis as its principal lending partner from its yield-generating product allowing customers to deposit their cryptocurrency in exchange for interest. Gemini customers are being represented by the law firm Latham & Watkins.

Another group of Genesis’s multiple creditor’s loans totaling $900 million which law firm Proskauer Rose represents. As a result, the total loans amount to  $1.8 billion in claims and with the incoming group represented by law firm Kirkland & Ellis, the loan figures look like it will continue to grow.

Genesis Hiring Investment Bank To Explore Options

Genesis Global Capital has reportedly been looking into ways to avoid bankruptcy. The company has employed investment bank Moelis & Co. to explore options for its crypto-lending business as it seeks to address client needs after suspending withdrawals.

On November 16, the company’s institutional lending unit was forced to suspend redemptions and new loan originations. Genesis had $175 million in assets frozen on the failed crypto exchange, FTX. To strengthen the balance sheet, its parent company Digital Currency Group (DCG) provided Genesis with $140 million in equity.

Genesis’ statement said it does not intend to file for bankruptcy imminently. The company’s goal is to resolve its current situation consensually, without any need for a bankruptcy filing. Genesis also says it has been having constructive conversations with creditors. Moreover, Genesis said it had begun discussions with potential investors and its largest creditors.

Table of Contents

EDITOR’S CHOICE

Hot Stories

🔑🔓⚡

Unlock the Power of Crypto!

Get the most important crypto news, price predictions, and expert insights delivered to your inbox.