FT reports Genesis and DCG owe Gemini clients $900 million

The cryptocurrency broker Genesis Global Capital and its parent company Digital Currency Group (DCG) owe Gemini clients $900 million. The Financial Times reports, citing sources familiar with the matter.

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On November 16, Genesis Global Capital froze withdrawals and the issuance of new loans. This occurred amid heightened withdrawal requests from clients after the FTX collapse.

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The OTC platform is a partner of Gemini’s Earn lending program.

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According to FT sources, the Winklevoss twins’ exchange is trying to return client assets. To this end, it has formed a creditors’ committee.

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Sources told the paper that Genesis Global Capital reported the engagement of Moelis & Company. According to the publication, the broker is studying various options, including bankruptcy.

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Earlier, The Wall Street Journal wrote that Genesis Global Capital requested emergency financing of $1 billion. According to the paper, the platform continued to withdraw deposits ‘primarily through retail programs and Genesis’s partners (for example, Gemini Earn), as well as institutional clients’.

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Several US regulators are examining possible violations of law by Genesis Global Capital.

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