Genesis Loans Reach $1.8 Billion And Keep Counting
According to CoinDesk, the total amount of loans from customers who have received legal advice because their funds are locked in the encrypted lending platform Genesis has reached $1.8 billion US dollars, and this number may continue to grow.
The Financial Times previously reported that Genesis owed about $900 million to Gemini which is owned by the Winklevoss brothers, and another group of Genesis creditors had loans totaling $900 million, represented by law firm Proskauer Rose.
Eventually, funding claims by law firm Proskauer Rose have reached $1.8 billion, with more to come in the form of a third task force represented by law firm Kirkland & Ellis, which has represented clients including Celsius and Voyager Digital, however, the overall claim amount is unknown, and law firm Latham & Watkins is also representing the Gemini customers group.
Genesis, which has been trying to raise at least $1 billion in new funding for its lending arm after it had $2.8 billion in total active loans on its balance sheet, about 30 percent of which was issued to related parties, had previously warned investors that if funding fails, it may need to file for bankruptcy. Besides, Genesis has since hired investment bank Moelis to explore options including bankruptcy, the New York Times reported.
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