Crypto broker Genesis allegedly owes $900 million to clients of cryptocurrency exchange Gemini alone.
Cryptocurrency broker Genesis Global allegedly owes its creditors more than $3 billion, according to a new report published by the Financial Times on Jan. 12. Its parent, Digital Currency Group (DCG), which also owns Grayscale Investments and its series of digital asset trusts, seeks to sell part of its venture capital holdings to offset the shortfall.
According to people familiar with the matter, DCG’s venture arm has more than 200 crypto-related projects “such as exchanges, banks, and custodians in at least 35 countries” with a total valuation of around $500 million.
Cointelegraph previously reported on Nov.16, 2022, that Genesis Global halted withdrawals citing “unprecedented market turmoil.” At the time, the company reportedly had $175 million worth of funds stuck on FTX and had already received a $ 140 million equity infusion to cover losses.
This is a developing story, and further information will be added as it becomes available.
