Bankrupt Genesis Owes a Whopping $3.5Billion to Creditors

Woman depressed over bankruptcy of Crypto Lending Institution Genesis Ⓒ 2023 – Crypto Coin Opps
Woman depressed over bankruptcy of Crypto Lending Institution Genesis Ⓒ 2023 – Crypto Coin Opps
Woman depressed over bankruptcy of Crypto Lending Institution Genesis Ⓒ 2023 – Crypto Coin Opps

Genesis, a crypto lender, has filed for bankruptcy protection with over 100,000 creditors. According to a bankruptcy filing published late Thursday night, its sister exchange Gemini has several significant creditors.

Trading titan Cumberland, along with Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund are among the 50 largest of Genesis’ creditors.

The End for Genesis

Genesis filed for bankruptcy protection during the late U.S. hours of Thursday. It called the action, a “strategy to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.” 

Who is Owed What

Among the list of creditors are well-known names among this industry.

-Cumberland DRW ($18.7 million)

-Mirana (which has invested in ByBit) $151.5 million

-MoonAlpha Finance (the team behind Babel Finance) is owed $150 million

-VanEck’s New Finance Income Fund, which is owed $53 million

There are also a number of creditors that have been redacted from the filing to the bankruptcy court in New York. An unknown creditor is owed $462.2 million and another is owed $230 million.

A company called Heliva International Corp. is owed $55 million. Helica lists Decentraland’s CFO Santiago Esponda as a contact point.

Risk Management and Stability

This bankruptcy filing is a significant development in the crypto industry and raises questions about the stability of crypto lending businesses. It highlights the importance of proper risk management and due diligence for companies and investors operating in this space.

Many of the creditors listed in the filing are established players in the crypto industry. Their involvement with Genesis highlights the challenges endured among digital assets. The crypto lending sector has been under scrutiny in recent times, and this bankruptcy filing is a reminder of the risks involved in this area

Another Significant Bankruptcy

Gemini is far from the first high-profile crypto bankruptcy in recent months. With over 100,000 creditors among the three of its companies that declared bankruptcy, it raises questions about the stability of crypto lending businesses. The involvement of established players in the crypto industry as creditors highlights constant challenges faced by this fast-paced financial niche.

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