{"id":85136,"date":"2023-09-28T18:57:47","date_gmt":"2023-09-28T15:57:47","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=85136"},"modified":"2025-09-12T21:30:39","modified_gmt":"2025-09-12T18:30:39","slug":"media-gemini-pulled-282-million-from-genesis-global-capital-before-the-platforms-bankruptcy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/media-gemini-pulled-282-million-from-genesis-global-capital-before-the-platforms-bankruptcy\/","title":{"rendered":"Media: Gemini pulled $282 million from Genesis Global Capital before the platform’s bankruptcy"},"content":{"rendered":"

The Gemini exchange pulled $282 million from Genesis Global Capital over several months before the platform announced bankruptcy. According to Bloomberg<\/a>, citing sources familiar with the matter.<\/p>\n

The Winklevoss brothers’ firm is pursuing, through the courts, the return of $1.1 billion. The debt was owed to Gemini’s clients under the Earn program, which allowed users of the exchange to earn yields on assets borrowed on the platform.<\/p>\n

The $282 million mentioned became a reserve to satisfy customer claims.<\/p>\n

On November 16, 2022, Genesis Global Capital froze withdrawals<\/a> and the issuance of new loans. The firm cited “heightened requests” from clients after the collapse of FTX<\/a>.<\/p>\n

The source of difficulties was the collapse of the hedge fund 3AC<\/span><\/a> in July of the same year. The latter did not fulfill its obligations to Genesis Global Capital on $2.36 billion<\/a>. Support for the firm came from its parent DCG<\/span>.<\/p>\n

In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy<\/a>. According to media reports, their liabilities exceed $3 billion<\/a>. This amount includes claims by Gemini exchange’s clients totaling $900 million<\/a>.<\/p>\n

In May, DCG agreed<\/a> to launch a 30-day pre-trial mediation process.<\/p>\n

The parties sought to reach a workable resolution to the Genesis creditors agreement proposed in February 2023, under which creditors could recover 80% of the lost funds. The arrangements envisaged a gradual write-off of the platform’s loan portfolio and the sale of insolvent entities.<\/p>\n

In May, DCG skipped a payout<\/a> of $630 million to the Bitcoin exchange.<\/p>\n

In July, Gemini filed a suit, seeking immediate return of $1.1 billion for 232,000 affected Earn users. Digital Currency Group urged its dismissal<\/a>. This was followed by an ultimatum from the Winklevoss brothers, who sought a payout of $1.46 billion.<\/p>\n

In August, DCG promised to reimburse Genesis creditors 70% to 90% of funds. However the latter called the proposal “unsatisfactory” and threatened to block any final bankruptcy deal on such terms.<\/p>\n

In September, Genesis filed a lawsuit against DCG<\/a> over unpaid loans of $600 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bloomberg: Gemini pulled $282 million from Genesis Global Capital several months before the crypto-lending platform filed for bankruptcy.<\/p>\n","protected":false},"author":1,"featured_media":85137,"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":[184,719],"class_list":["post-85136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dcg","tag-gemini"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85136","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=85136"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85136\/revisions"}],"predecessor-version":[{"id":85138,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85136\/revisions\/85138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/85137"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=85136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=85136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=85136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}