Crypto lender Origin files for bankruptcy after SEC lawsuit
Genesis Global Holdco LLC, a prime brokerage subsidiary of venture capital firm Digital Currency Group (DCG), announced on Friday that it has voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Young. The Company’s two borrowing business subsidiaries, Genesis Global Capital LLC and Genesis Asia Pacific Pte. Ltd., is a part of the same filing while other subsidiaries included in derivatives and spot trading and custody business and not included in the Genesis Global trading file while continuing to conduct client trading operations smoothly. As part of the Chapter 11 filing, Origin has laid out a roadmap for the exit including plans and detailed by the company that it plans to pursue a dual truck process in pursuit of a sale, capital raising and/or equity transaction. This enables the emerging new ownership of the business to be considered as well. Derar Islam, who is the interim CEO of Genesis, revealed that the company is attempting to address liquidity issues ahead of the bankruptcy filing, including the default of crypto hedge fund 3 Arrows Capital (3AC) and the collapse of a crypto exchange. Is. Sure enough, Genesis’ interim CEO was appointed to his position last August. If we talk about it, Genesis claims that it has more than $150 million in cash on hand which will provide enough liquidity to facilitate business operations and support process and the company has filed the petition so that it can be used for day-to-day operations. can be seen or done or issued in the normal way. Redemptions and new loan originations in the lending business remain suspended, according to the announcement, and that additional matters will be addressed in the Chapter 11 process. With the court-supervised restructuring process underway, Genesis is understood to be promoting further discussions with its creditor and parent company Digital Currency Group, as well as an effort to reach a holistic solution for the lending businesses. Hopefully, which when achieved can provide an optimal result for the customers.
Genesis and crypto exchange Gemini have been at loggerheads when it comes to Gemini’s crypto lending program, Earn. In November, Genesis blocked the withdrawal of nearly $900 million in assets from over 340,000 Gemini Earn investors.
Gemini co-founder Cameron Winklevoss said on Twitter on Friday that Genesis’ bankruptcy filing is a really important step and enables customers to recover their assets. However, he added that the decision to put Genesis into bankruptcy does not necessarily absolve Barry [Silbert], DCG, and any wrongdoers from accountability. In more detail, the co-founder said that he is preparing legal proceedings against Barry, DCG, and others responsible for this fraud, which has exposed the origin of 340,000 earning users and others, and their associates. cheated by He further says that unless Barrie and DCG do not live up to their promise and act according to us and give proper proposals, we will soon file a lawsuit against them. We also believe that in addition to returning all the money that is owed to the people – Genesis, DCG, and Barry must provide them with an explanation. Bankruptcy provides an essential platform for this to happen. Further, the founders say that last week, was sued by the Securities and Exchange Commission on both Gemini and Genesis Global Capital “Charged for the registered offering and sale of securities to retail investors through the offering of the Gemini Earn Crypto Asset Lending Program”.
