genesis: Cryptocurrency Broker Genesis Owes Gemini Clients $900M: Report

Crypto broker Being and its parent company Group of digital currencies (DCG) owes money to clients of the Winklevoss twins cryptocurrency exchange Twins $900 million, the Financial Times reported on Saturday.

Cryptocurrency exchange Gemini is trying to recover funds after Genesis made a mistake due to last month’s failure of Sam Bankman-Fried. FTX Crypto Group, the newspaper reported, citing people familiar with the matter.

Venture Capital Digital Currency Group, which owns Genesis Trading and crypto asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm, Digital Currency chief executive Barry Silbert told shareholders last month.

The report states that Gemini, which operates a crypto lending product in partnership with Genesis, has now formed a committee of creditors to recover funds from Genesis and its parent company DCG. Genesis and Gemini did not immediately respond to a Reuters request for comment.

Genesis has hired investment bank Moelis & Company to explore options, including a potential bankruptcy, the New York Times reported last month, citing three people familiar with the matter.

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Last month, Genesis Global Capital suspended customer buyouts in its lending business, citing the sudden crash of the FTX cryptocurrency exchange.

Cryptocurrency trading platform FTX filed for bankruptcy protection in the US in November. 11th in the biggest cryptocurrency crash to date after traders pulled billions from the platform in three days and rival exchange Binance pulled out of a rescue deal.

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