On January 4, Derar Islim, the interim CEO of Genesis Trading, a cryptocurrency brokerage & lender that was forced to cease withdrawals in November 2022, stated that the company requires further time to work out its complex financial situation. This comes after Gemini’s co-founder Cameron Winklevoss penned an open letter highlighting the delay in resuming withdrawals for his Gemini exchange, which has a partnership with the company’s subsidiary DCG.
Following the failure of the FTX exchange in November, Genesis secured $900 million in customer cash belonging to clients of the retail cryptocurrency exchange Gemini. At the beginning of December, Genesis stated that a resolution of some kind would likely be a matter of “weeks” rather than days, despite rumors that an immediate solution or even a bankruptcy file was on the horizon.
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In a letter that was addressed to the brokerage’s clients on Wednesday, Derar Islim was quoted as saying:
While we are committed to moving as quickly as possible, this is a very complex process that will take some additional time,
Genesis further stated that the firm is continuing its work with advisors while maintaining its key focus on seeking a remedy for the borrowing & lending business.
In another letter that was sent out to investors on November 23, Genesis stated that it had begun discussions with potential investors as well as their largest creditors and borrowers, including Gemini and DCG (Digital Currency Group), to agree on a solution that shores up their lending business’ overall liquidity and also addresses clients’ needs.
On Monday, Winklevoss started a Twitter spat by publishing an open letter to Barry Silbert, the founder & CEO of DCG. The letter claimed that Silbert’s DCG & its lending arm Genesis were dragging their feet on a deal to return the frozen $900 million that they owe to Gemini’s Earn program users.
Also Read: Barry Silbert Hits Back At Gemini’s Cameron Winklevoss
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