The collapse of the crypto money market caused havoc caused by the bankruptcy of many crypto money companies, especially the giant crypto money exchange FTX. While more companies are expected to go bankrupt, CoinDesk reported that the crypto money company Genesis, which is on the verge of bankruptcy, owes at least $ 1.8 billion to its creditors. This figure includes the $ 900 million debt owed to the customers of the Earn program of the crypto currency exchange Gemini.
The Company Has At Least $1.8 Billion in Debt
The Financial Times first reported over the weekend that Genesis owes $900 million to customers of Gemini’s Earn program. CoinDesk based on an anonymous source, according to genesis, in addition to the Proskauer Rose Law Firm has a debt of more than $ 900 million to a group represented by the creditor.
According to CoinDesk, in addition to the Proskauer group, Genesis owes money to another temporary creditor group represented by the law October Kirkland & Ellis. While the amount of debt owed to the group in question is unknown, this means that Genesis owes at least $ 1.8 billion. Bloomberg reported last week that Proskauer Rose and Kirkland & Ellis are representing Genesis creditor groups. According to CoinDesk, the law firm Latham & Watkins represents the client group of the crypto currency exchange Gemini.
The Process That Begins with Stopping Withdrawals
Genesis had halted clients’ withdrawals last month after taking big blows from FTX and before that from Three Arrows Capital (3AC). The company is currently trying to raise funds and has commissioned the investment bank Moelis & Company to explore its options, including a potential bankruptcy.
With all this, US state regulators have opened an investigation into the situation at Genesis. Alabama is one of the states investigating whether Genesis persuaded residents to invest in crypto-related securities without making the appropriate registrations, Barron’s reported.
Market experts and analysts warn investors that Genesis, which has not yet declared official bankruptcy, taking such a step could cause a new decline in Bitcoin (BTC) and altcoins.
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