Genesis Global Capital is close to filing for bankruptcy


CoinDesk is reportedly considering the sale or partial sale of cryptocurrency lender Genesis Global Capital. Bloomberg sources said the company could begin the process as early as this week. 

The organization has faced problems since last summer, when Three Arrows Capital collapsed. After the FTX exchange, in which Genesis had invested $175 million, filed for bankruptcy, withdrawals from Gemini, a cryptocurrency platform owned by Cameron and Tyler Winklevoss, were stopped. 

It also led to Gemini Earn, a service that allowed users to earn money by lending coins, being discontinued and customers losing access to $900 million in assets. In response to the situation, Cameron accused Barry Silbert of DCG of "dishonest tactics" and delaying refunds, but Silbert denied the charges, saying it was just an attempt to get public attention.

Gemini later terminated its loan agreement with Genesis and permanently closed its program called Gemini Earn. According to news reports, Genesis owes about $1.8 billion to its creditors, including Gemini customers and another group that filed lawsuits against them for $900 million. Negotiations between the various creditors and Gemini are ongoing, but a final agreement has not yet been reached between them.

On January 18, CoinDesk, a division of DCG, told reporters that it has attracted consultants from Lazard Ltd. In order to explore the possibility of a partial or complete sale of the company. On the same day it became known that DCG notified shareholders about its decision to suspend payment of quarterly dividends in order to save money.

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