Genesis faces $1.8 billion in creditor claims, reports say

The outstanding debt of the cryptocurrency broker Genesis Global Capital has reached $1.8 billion and is likely to continue rising. CoinDesk reports, citing informed sources.

On December 3, the Financial Times reported that Gemini clients did not receive about $900 million as a partner in the Earn lending program of the bitcoin exchange.

According to CoinDesk, a group of unnamed creditors joined Gemini with a similar total amount of claims.

Representing its interests, the law firm Proskauer Rose may soon file claims against Genesis on behalf of another circle of entities served by Kirkland & Ellis. The claims of this group are not disclosed, according to a source.

In November, The Wall Street Journal reported that the platform sought emergency financing of $1 billion. This occurred before the suspension of crypto-lending operations following the collapse of FTX.

Later, Genesis hired investment bank Moelis & Company to study options, including bankruptcy. Negotiations have begun, including with Gemini, the company said.

Earlier, Bloomberg reported that Genesis creditors were seeking to prevent bankruptcy of the organization.

According to the founder and CEO of Messari, Ryan Selkis, the platform needs to raise at least $500 million to avoid liquidation.

Regulators in the United States are examining possible violations of law by Genesis Global Capital.

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