The cryptocurrency broker Genesis and its parent company Digital Currency Group (DCG) owe $900 million to consumers of the Winklevoss brothers’ Gemini crypto exchange, according to a report published by the Financial Times on Saturday.
Crypto exchange Gemini is trying to recover funds after Genesis was crippled by the bankruptcy of Sam Bankman-Fried’s crypto group FTX last month, the paper said, citing people with knowledge of the matter.
Venture capital firm Digital Currency Group, which owns Genesis Trading and crypto asset manager Grayscale, owes Genesis’ lending arm $575 million, Digital Currency chief executive Barry Silbert told shareholders. last month.
Gemini, which runs a crypto lending product in partnership with Genesis, has formed a committee of creditors to recover funds from Genesis and its sister company DCG, the report added.
Genesis and Gemini did not initially respond to Reuters’ request for comment.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.