Genesis needs more time to sort ‘complex’ financial situation Genesis needs more time to sort ‘complex’ financial situation
Genesis CEO said the firm remains focused on its effort to solve its financial issues.
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Updated: Jan. 5, 2023 at 6:03 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Genesis interim CEO Derar Islim said the firm needs more time to sort the financial situation of its lending arm, according to a Jan. 4 statement.
Islim said the firm was currently involved in “a very complex process that will take some additional time.” He added that the firm remains committed to solving its current situation. Islim wrote:
“We remain focused on finding a solution for our borrowing and lending intermediation business and reaching the best outcome for all affected clients. We continue working with our advisors, in collaboration with DCG and advisors appointed by various client groups, to evaluate options to preserve client assets and move the business forward.”
Genesis halted withdrawals in November 2022 following FTX’s collapse. The move affected Gemini Earn’s clients, with $900 million on the embattled crypto lender platform.
The lender, alongside its parent company Digital Currency Group (DCG), has faced increased scrutiny over their financial health. Speculations have emerged that the firm might have to file for bankruptcy to survive its condition. Three Gemini Earn users filed a class action lawsuit against the firm.
Meanwhile, Gemini co-founder Cameron Winklevoss gave DCG’s CEO Barry Silbert a Jan. 8 deadline to resolve the issues while also accusing him of employing “stall tactics.”
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Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Barry Silbert, recognized as a foundational figure in the cryptocurrency landscape, serves as the CEO and founder of Digital Currency Group (DCG).
Cameron Winklevoss, a renowned figure in the cryptocurrency sector, is a Harvard University graduate with a degree in Economics and holds an MBA from Oxford University.