The creditors of distressed crypto lending firm Genesis Global Capital, affected in the aftermath of the FTX collapse, have loans amounting to over $1.8 billion.
Recently, a group of Genesis creditors was seeking options to avoid a bankruptcy filing to prevent an FTX-like situation and are currently getting advice from the law firm Proskauer Rose.
Genesis-affiliated Gemini’s Earn program users were due $900 million when Genesis’ lending division stopped customer withdrawals on November 16. The law firm Latham & Watkins represents the Gemini customers group.
Two weeks back, Gemini stated they are continuing to work with Genesis Global Capital, and its parent company Digital Currency Group (DCG) to find a solution for Earn users to redeem their funds.
Proskauer Rose is representing the second group of Genesis creditors with loans totaling $900 million. The third group of creditors is working with Kirkland & Ellis but requested anonymity due to the confidential nature of the litigation, thus their loan amounts are not yet disclosed.
With this huge amount of loans, Genesis Global Capital will probably follow the FTX, Celsius, and Voyager route and file for bankruptcy ultimately.
Also Read: Genesis taps Restructuring Expert to prevent Bankruptcy
