{"id":15106,"date":"2022-12-03T16:33:10","date_gmt":"2022-12-03T16:33:10","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/genesis-owes-gemini-customers-900-million-exchange-is-attempting-to-recoup-assets-bitcoin-news\/"},"modified":"2022-12-03T16:33:10","modified_gmt":"2022-12-03T16:33:10","slug":"genesis-owes-gemini-customers-900-million-exchange-is-attempting-to-recoup-assets-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/genesis-owes-gemini-customers-900-million-exchange-is-attempting-to-recoup-assets-bitcoin-news\/","title":{"rendered":"Genesis Owes Gemini Customers $900 Million, Exchange Is Attempting to Recoup Assets \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a recent report from the Financial Times (FT), Genesis Global Capital allegedly owes $900 million to Gemini customers. The exchange operated by Cameron and Tyler Winklevoss is attempting to recover the funds from Genesis, according to FT\u2019s sources.<\/strong><\/p>\n

Report Claims Genesis Owes the Winklevoss-Operated Exchange Gemini $900 Million<\/h2>\n

FT reports<\/a> that the centralized crypto asset exchange created by the Winklevoss brothers is owed $900 million and reportedly Genesis Global Capital is the debtor. People familiar with the matter told FT that Gemini was in the process of trying to recover the funds from Genesis and the company\u2019s parent firm Digital Currency Group (DCG).<\/p>\n

The report further alleges that Genesis is still attempting to solicit funds from investors to ease financial burdens. While reports noted that Genesis was trying to get $1 billion in funding, FT details that it\u2019s been cut down to roughly $500 million. The news follows the report published by Barron\u2019s author Joe Light that noted Genesis is reportedly<\/a> being probed by state securities regulators.<\/p>\n

Furthermore, on Nov. 22, 2022, the New York Times (NYT) reported<\/a> that Genesis Global Capital hired a restructuring adviser. NYT detailed that Moelis & Company was hired by Genesis to \u201cexplore options including a potential bankruptcy,\u201d according to three people familiar with the matter. FT\u2019s report about the issues between Genesis and Gemini indicates that FT\u2019s sources say Gemini is in the midst of creating a creditors\u2019 committee.<\/p>\n

Last month, Gemini revealed that customers using the platform\u2019s Earn program could not withdraw funds. \u201cWe are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible,\u201d Gemini said<\/a> on Nov. 16, 2022. Gemini insisted that customer funds on Gemini could be redeemed at a 1:1 rate at any time and the exchange\u2019s other products and services were normal.<\/p>\n

Gemini\u2019s message was published the same day Genesis Global Capital detailed<\/a> that it was pausing withdrawals and new loan originations. DCG founder Barry Silbert detailed in a letter to shareholders<\/a> on Nov. 22 that it was important to note the lending arm of Genesis has had \u201cno impact on Genesis\u2019 spot and derivatives trading or custody businesses, which continue to operate as usual.\u201d Silbert also reassured shareholders that his firm will \u201ccontinue to be a leading builder of the industry.\u201d<\/p>\n

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\nTags in this story
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$900 million<\/a>, Bankruptcy<\/a>, Barron\u2019s<\/a>, Barry Silbert<\/a>, Cameron and Tyler Winklevoss<\/a>, DCG<\/a>, DCG CEO<\/a>, Digital Currency Group<\/a>, Gemini<\/a>, Gemini EARN<\/a>, Gemini Genesis<\/a>, genesis<\/a>, Genesis Gemini<\/a>, Genesis Global Capital<\/a>, Regulations<\/a>, Regulators<\/a>, restructuring<\/a>, restructuring options<\/a>, Securities<\/a>, Shareholders<\/a>, state securities regulators<\/a>, Winklevoss-Operated Exchange<\/a><\/div>\n<\/div>\n

What do you think about Genesis reportedly owing Gemini $900 million in funds? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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