{"id":70963,"date":"2022-12-05T10:24:27","date_gmt":"2022-12-05T08:24:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70963"},"modified":"2025-09-08T05:19:37","modified_gmt":"2025-09-08T02:19:37","slug":"genesis-faces-1-8-billion-in-creditor-claims-reports-say","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/genesis-faces-1-8-billion-in-creditor-claims-reports-say\/","title":{"rendered":"Genesis faces $1.8 billion in creditor claims, reports say"},"content":{"rendered":"<p>The outstanding debt of the cryptocurrency broker Genesis Global Capital has reached $1.8 billion and is likely to continue rising. <a href=\\\"https:\/\/www.coindesk.com\/business\/2022\/12\/04\/genesis-creditor-groups-loans-amount-to-18b-and-counting-sources\/\\\"> CoinDesk<\/a> reports, citing informed sources.<\/p>\n<p>On December 3, the Financial Times<a href=\"https:\/\/forklog.com\/en\/news\/ft-reports-genesis-and-dcg-owe-gemini-clients-900-million\"> reported<\/a> that Gemini clients did not receive about $900 million as a partner in the Earn lending program of the bitcoin exchange.<\/p>\n<p>According to CoinDesk, a group of unnamed creditors joined Gemini with a similar total amount of claims.<\/p>\n<p>Representing its interests, the law firm Proskauer Rose may soon file claims against Genesis on behalf of another circle of entities served by Kirkland &#038; Ellis. The claims of this group are not disclosed, according to a source.<\/p>\n<p>In November, The Wall Street Journal<a href=\"https:\/\/forklog.com\/en\/news\/genesis-global-capital-sought-emergency-financing-of-1-billion-reports-say\"> reported<\/a> that the platform sought emergency financing of $1 billion. This occurred before<a href=\"https:\/\/forklog.com\/en\/news\/genesis-global-capital-suspends-crypto-lending-operations\"> the suspension of crypto-lending operations<\/a> following<a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"> the collapse of FTX<\/a>.<\/p>\n<p>Later, Genesis<a href=\"https:\/\/forklog.com\/en\/news\/nyt-genesis-does-not-rule-out-bankruptcy\"> hired<\/a> investment bank Moelis &#038; Company to study options, including bankruptcy. Negotiations have begun, including with Gemini, the company said.<\/p>\n<p>Earlier, Bloomberg reported that Genesis creditors were seeking<a href=\"https:\/\/forklog.com\/en\/news\/bloomberg-reports-creditors-plans-to-avert-genesis-platform-bankruptcy\"> to prevent bankruptcy<\/a> of the organization.<\/p>\n<p>According to the founder and CEO of Messari, Ryan Selkis, the platform needs<a href=\"https:\/\/forklog.com\/en\/news\/messari-founder-outlines-best-case-scenario-for-a-struggling-dcg\"> to raise at least $500 million<\/a> to avoid liquidation.<\/p>\n<p>Regulators in the United States are examining<a href=\"https:\/\/forklog.com\/en\/news\/us-regulators-open-probe-into-genesis-global-capital\"> possible violations of law<\/a> by Genesis Global Capital.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"\/\/telegram.me\/forklog\u201d\\\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The outstanding debt of Genesis Global Capital has reached $1.8 billion and is likely to continue rising, CoinDesk reports, citing informed sources.<\/p>\n","protected":false},"author":1,"featured_media":70964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,1237],"class_list":["post-70963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-genesis-global-trading"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=70963"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70963\/revisions"}],"predecessor-version":[{"id":70965,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70963\/revisions\/70965"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/70964"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=70963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=70963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=70963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}