Genesis Global Capital filed for chapter 11 bankruptcy following a liquidity crisis caused by the collapse of Three Arrows Capital and FTX.
The company’s parent firm, Genesis Global Holdco, and lending unit Genesis Asia Pacific have also filed for bankruptcy protection.
According to the court filing, Genesis Global Holdco estimated its liabilities and assets to range between $1B and $10B. The liabilities of the two lending firms are estimated to be $500M. Genesis owes over $3.5B to its top 50 creditors. This includes $765.9M to Gemini, $150M to MoonAlpha Finance, and $13M to Stellar Foundation.
In its press release, Genesis claimed that the restructuring process will be managed by an independent special committee of the firm’s board of directors.
“Genesis has proposed a roadmap to an exit including a Chapter 11 plan that calls for a framework for a global resolution of all claims through, and the creation of, a trust that will distribute assets to creditors.”
The firm also stated that it possesses $150M in cash, noting that the funds will provide enough liquidity to facilitate its restructuring process.
Genesis Global Trading and Genesis’ custody unit will remain operational.
Meanwhile, Cameron Winklevoss, the Co-Founder of Gemini, claimed that Genesis' filing for bankruptcy will be a “crucial step” towards recovering the assets of users of Gemini’s Earn program. He also threatened to file a lawsuit against Digital Currency Group and Barry Silbert if they do not make a fair deal to creditors.
