Former Genesis Employees Raised Millions For New Company Before It Filed For Bankruptcy

Key Points:

• After more than five years at Genesis, Matt Ballensweig departed the company in September. In mid-December, he sent a letter to a potential investor about a fund he was launching called Hunting Hill Digital.
• Ballensweig stated in the message that he and his partners had previously raised $2.5 million from Bessemer Venture Partners at a $30 million post-money value and that they were working to raise an additional $5 million.

Three former employees of cryptocurrency lender Genesis claimed they had secured millions of dollars for a new cryptocurrency hedge fund only weeks before the company filed for bankruptcy.

According to CNBC reports, Matt Ballensweig, a former Genesis executive, told a potential investor in mid-December last year that he was planning a fund called Hunting Hill Digital and had already acquired it from Bessemer Venture Partners.

Ballensweig’s name appeared in court documents related to the collapse of the lending book. Gemini, a significant Genesis customer and cryptocurrency exchange, claimed that Ballensweig had misled it in July by telling it that the company was financially secure. According to court documents, Gemini said that Ballensweig informed its agents that Genesis had “capital to operate… for the long term.”

According to the bankruptcy filing, Genesis owes more than $3.5 billion to its top 50 creditors, including cryptocurrency exchange Gemini, trading behemoth Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.

He and his partners are raising another $5 million. The fund’s flagship product will be launched in the first quarter of 2023. Matt Ballensweig said the fund was launched in partnership with former Genesis employees and Adam Guren of hedge fund Hunting Hill, using a Delta-neutral strategy.

Ballensweig said that the fund’s partners also include Martin Garcia, former managing director of Genesis, and Reed Werbitt, former trading director of the company, and the three will also launch two other beta products, “Top 25 Index” and “DeFi beta.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News