Genesis Owes Customers Of Gemini $900 Million
According to Financial Times, the digital asset trading group Genesis and its parent company Digital Currency Group (DCG) owe users of the Winklevoss twins’ crypto exchange $900 million.
Following BlockFi, cryptocurrency exchange Gemini which is run by Tyler and Cameron Winklevoss appears to be the newest victim of the failure from FTX. Recently, Gemini established a committee of creditors to recoup funds from Genesis and DCG.
DCG, led by billionaire Barry Silbert, and the digital asset trading group are negotiating with the creditor committee. DCG is one of the largest investors in the cryptocurrency sector which was valued at $10 billion last year by investors including Singapore’s GIC sovereign wealth fund, Google’s venture arm CapitalG, SoftBank, and its subsidiaries that are Genesis and investment firm Grayscale.
DCG has $2 billion in debt, $1.7 billion of which is owing to Genesis through two loans. Over the summer, the digital asset trading group suffered a $1.1 billion loss on a loan to the failed hedge fund Three Arrows Capital. As a result of taking on the thereof debt, DCG now owes Genesis $1.1 billion.
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