Genesis is still trying to find a way to avoid bankruptcy
In a letter to customers, Derar Islim, interim CEO of cryptocurrency market maker and lender Genesis, provided an update on the company’s efforts to stabilize its finances and resume withdrawals and new lending. Despite their commitment to working quickly, this is a very complicated procedure that will require more time.
On January 2, Winklevoss – co-founder of the Gemini crypto exchange, sent an open letter to Silbert – CEO of Genesis’ owner — the Digital Currency Group, on Twitter in which she accused him in relation to Genesis’ $900 million debt to Gemini. The funds in Genesis’ FTX trading account are what are causing its present financial problems.
On Nov. 10, the corporation reported that it had approximately $175 million in its account that was no longer accessible. Genesis apparently stopped accepting withdrawals on Nov. 16 and hired investment firm Moelis & Company the next week to provide restructuring advice.
Islim informed clients in a letter dated December 7 that finding a road ahead for cash recovery would “require additional weeks rather than days.” In order to “resolve the liquidity challenges” that stopped Genesis from paying $900 million allegedly owing to participants in Gemini’s “Earning Money” program, investment firm Houlihan Lokey was hired by Gemini.
Learn more about Genesis Global Tranding.
Winklevoss imposed a deadline of one week for a response to the plan on December 20. Investors filed a lawsuit against Winklevoss and Tyler Winklevoss, co-founder of Gemini, on December 27 over the frozen funds in the “Earning Money” program, charging them of fraud and breaking securities laws.
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