Sign Up on MEXC
In light of the current shortage of liquid assets–Genesis Global–the crypto lending division of Digital Currency Group (DCG) has been engaged in private discussions with a variety of creditor parties. According to a recent report, it has issued a warning that the firm may need to file for bankruptcy if it is unable to raise further funding.
Genesis Prepares For Bankruptcy
Reports suggest that creditors like the Winklevoss twins would be willing to agree to a remission period between one and two years under the prepackaged bankruptcy plan. This forbearance period would apply to the majority of the payments. Furthermore, creditors would receive cash payments in addition to shares in the parent business of Genesis, the Digital Currency Group, which is headed by Barry Silbert.
Read More: Check Out The Top Crypto Telegram Channels Of 2023
Cameron Winklevoss, the co-founder of Gemini, and Barry Silbert have been engaged in a Twitter fight where the former has accused Silbert of intermixing finances at the crypto conglomerate and of negotiating in bad faith. In his most recent open letter, he demanded the DCG chief stand down from his position as he failed to keep his end of the promise of returning customer funds worth $900 million.
Genesis Faces Growing Tension
Further proving Genesis’ weak financials, DCG sent a letter to the shareholders on January 17, where the company informed that it will stop paying quarterly dividends in an attempt to preserve capital. The creditors, Genesis, and DCG have compared several different approaches but have not been able to come to an agreement as of yet. Both Kirkland & Ellis and Proskauer Rose have been serving as advisors to various creditors’ groups.
After the failure of the hedge fund Three Arrows Capital, financial pressure started to build up at Barry Silbert’s DCG. In November, shortly after the cryptocurrency exchange FTX–where Genesis had some of its cash stored–filed for bankruptcy, Genesis ceased processing withdrawals. The crypto exchange Gemini Trust, which is run by Cameron and Tyler Winklevoss, has been affected by these developments as Gemini Earn, a program that allows users of the platform to earn interest on their coins by lending them out through Genesis, also had to cease processing redemption requests.
Genesis Global is currently preparing the groundwork for the bankruptcy petition, which may take place as soon as this week.
Also Read: Up 25% in 7 Days, This Crypto’s Next Move Deserves Your Attention
- Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq
- Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash
- Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
- Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com
- SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
