Genesis Crypto Broker Owes $900 Million to Gemini Clients

Cryptocurrency broker Genesis and its parent company Digital Currency Group (DCG) owe $900 million to clients of the Winklevoss twins’ Gemini crypto exchange, the Financial Times reported.

Crypto exchange Gemini is trying to recoup the funds after Genesis was hurt by the bankruptcy last month of Sam Bankman-Fried’s crypto group FTX, the newspaper said, citing people familiar with the matter.

Venture capital firm Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis’s crypto lending arm, Digital Currency CEO Barry Silbert said last month, to shareholders.

Gemini, which runs a cryptocurrency lending product in partnership with Genesis, has now formed a committee of creditors to recover the funds from Genesis and its parent DCG, the report added.

Genesis and Gemini did not immediately respond to Reuters’ request for comment.

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

Genesis Global Capital suspended client repayments at its lending business last month, citing the sudden crash of cryptocurrency exchange FTX.

Cryptocurrency exchange FTX filed for bankruptcy in the United States on November 11, in the highest-profile debacle to date in the cryptocurrency industry, after traders withdrew billions from the platform in three days. and rival exchange Binance abandoned a bailout deal.