As a direct result of the failure of the FTX, the creditors of the crypto lending business Genesis Global Capital, which is now in a state of difficulty, are in possession of debts totaling more than $1.8 billion.
The legal firm Proskauer Rose is providing counsel to a group of Genesis creditors who have been investigating solutions to avoid a bankruptcy filing in order to avert a scenario similar to that of FTX. Recently, this group of creditors began their search.
Genesis-affiliated On November 16, the Genesis loan division put a halt to consumer withdrawals, which meant that customers of the Gemini Earn program were owed $900 million. The Gemini customers group is represented in legal matters by the law firm of Latham & Watkins.
Gemini indicated that they are continuing to work with Genesis Global Capital, as well as its parent firm Digital Currency Group (DCG), to find a solution that would allow Earn customers to redeem their monies. This announcement was made about two weeks ago.
The second set of Genesis creditors, with debts totalling $900 million, is being represented by Proskauer Rose, a law firm. The third set of creditors is also working with Kirkland & Ellis, but because of the private nature of the dispute, they have asked to remain anonymous. As a result, the amounts of their loans are not yet being made public.
Because of the enormous number of loans that it has taken out, Genesis Global Capital will very certainly end up declaring bankruptcy, just as FTX, Celsius, and Voyager did before it.
Compiled by Coinbold