NewsletterBreaking: Gemini Exchange Owed Nearly $1 Billion By Genesis, DCG
Gemini Genesis News: Crypto exchange Gemini appears to be the latest victim of the contagion from FTX collapse, followed by adverse effects for BlockFi, Genesis and the Digital Currency Group (DCG). Earlier, crypto lender BlockFi officially filed for chapter 11 bankruptcy owing to the market effects caused by the FTX meltdown. While it remains to be seen as to how many more companies would fall victim to the FTX downfall, it is important to safeguard the interest of Gemini customers. According to latest reports, the crypto exchange is owed to the tune of nearly $1 billion by Genesis trading.
Also Read: Apple Tax: Crypto Wallet MetaMask Ready to Dump Apple Ecosystem
Gemini Customers At Risk
The Winklevoss brothers are reportedly working on recovering the funds. According to a Financial Times report, the users of Gemini exchange are owed $900 million. Troubles began for Genesis Trading after the Sam Bankman-Fried crypto empire collapsed due to a liquidity crisis. Meanwhile, Gemini founders Cameron and Tyler Winklevoss are putting in efforts to negotiate the recovery process.
The report mentioned that the crypto exchange constituted a creditors committee that is responsible for recovery of user funds. Whereas bankrupt lender BlockFi said it plans to recover all dues owed to it by counterparties including FTX. On November 28, the lender began restructuring proceedings as a result of the FTX contagion.
Also Read: Top 7 Meme Cryptocurrencies Under US $1 To Buy Before 2023
Genesis Bankruptcy Avoidable?
Amid speculation of potential Genesis bankruptcy, the company’s management hired restructuring lawyers to prevent it from going for bankruptcy proceedings. The crypto brokerage firm had recently ramped up efforts to raise $500 million in emergency funding to save itself from the crisis. However, reports suggested that Genesis hired investment bank Moelis & Company to explore alternative options, which includes the possibility of bankruptcy. After the FTX meltdown in mid-November, Genesis stopped redemptions and initiation of new loans on November 16.
Also Read: Terra Do Kwon, LUNC Community Reacts To Court Rejecting Arrest Warrants
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Bitcoin Stalls Ahead of FOMC as Analyst Van de Poppe Sees No Break Until Tuesday
- Bitcoin Hyper Presale Review: How Utility is Unlocked With ZK-SVM Rollup
- Morgan Stanley Turns Bullish, Says Fed Will Cut Rates by 25bps This Month
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
