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Bankrupt Crypto Lender Genesis owes $900M to Gemini’s customers

Bankrupt Crypto Lender Genesis owes $900M to Gemini’s customers 3

Reportedly Genesis Global Trading was holding $900 million worth of crypto assets from the Gemini crypto exchange.

Gemini is a popular crypto exchange and ranks at 11th position in the crypto sector in terms of 24 hours global crypto trading volume on its platform.

Bankrupt Crypto Lender Genesis owes $900M to Gemini’s customers 2

The services of Gemini crypto exchange were also linked with the Crypto lending platform Genesis Global Trading, which recently filed for bankruptcy under chapter 11 in a US bankruptcy court.
Gemini was offering an 8% yield on crypto holdings in its Genesis-linked services, where crypto investors were allowed to hold & lock flagship crypto assets & stablecoins.

On 3 December, a report from Financial Times disclosed that Genesis was holding approximately $900 million worth of crypto funds from the Gemini platform. In short, we can say that Genesis should have to pay $900 million to the Gemini crypto exchange because that was the user’s funds.

Genesis Bankruptcy

This is a big reality that the bankrupt Crypto lending platform Genesis Trading was better in terms of funds management but its exposure to a wrong crypto exchange resulted in the worst situation for this company.

Initially, FTX Crypto exchange filed for bankruptcy along with its almost affiliated companies on 12 November. Just before the bankruptcy filing by FTX, Genesis halted funds withdrawal from its platform.

At the very start, the Genesis team said that they don’t have exposure to FTX exchange, which was not a truth. And finally filed for bankruptcy. However, the team tried to drag a separate path but failed.

Read also: Tether is running a Ponzi scheme, Says former SEC official

Bankrupt Crypto Lender Genesis owes $900M to Gemini’s customers

 

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