Crypto exchange Gemini attempts to recover $900 million from crypto lender Genesis, FT reports

Dec. 3 (Reuters) – Crypto brokerage Genesis and its parent company Digital Currency Group (DCG) owe twin cryptocurrency exchange clients Winklevoss Gemini $900 million, according to the Financial Times. mentioned on Saturday.

Cryptocurrency exchange Gemini is trying to recover funds after Genesis misfired last month over the failure of Sam Bankman-Fried’s FTX cryptocurrency blockchain, the newspaper said, citing people familiar with the matter.

Digital Currency Group CEO Barry Silbert told shareholders last month that venture capital firm Digital Currency Group, which owns Genesis Trading and crypto asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm.

The report added that Gemini, which operates a crypto lending product in partnership with Genesis, has now set up a creditors’ committee to recover funds from Genesis and parent DCG.

Genesis and Gemini did not immediately respond to a Reuters request for comment.

The New York Times reported last month, citing three people familiar with the matter, that Genesis has tapped investment bank Moelis & Company to explore options including possible bankruptcy.

Genesis Global Capital suspended customer refunds in its lending business last month, citing the sudden failure of cryptocurrency exchange FTX.

Cryptocurrency exchange FTX filed for bankruptcy protection in the US on November 11 in the loudest cryptocurrency blowout to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a bailout deal.

Additional reporting by Shubhendu Deshmukh and Rhea Benoy in Bengaluru; Editing by Toby Chopra and Christina Fincher

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