Genesis Owes Creditors $1.8 Billion

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ccording to The Financial Times, cryptocurrency trading and lending firm Genesis and its parent company Digital Currency Group (DCG) owes its creditors $1.8 billion. Of this, $900 million is owed to customers of Gemini's Earn program. Furthermore, Genesis has an outstanding debt of $900 million to a variety of creditors.

The law firm Latham & Watkins is representing the Gemini customers group, as stated by CoinDesk. Last month, Genesis ceased client withdrawals after taking substantial hits from FTX and Three Arrows Capital earlier on. The company has been attempting to raise funds and has hired the investment bank Moelis & Company to explore its options; said options include potentially filing for bankruptcy.

According to Barron's, U.S. state securities regulators are investigating Genesis for allegedly "enticing residents to invest in crypto-related securities without making the proper registrations." Alabama is reportedly one of the states involved in the investigation.

Jonathan

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.