Genesis needs more time to sort ‘complex’ financial situation

Genesis CEO said the firm remains focused on its effort to solve its financial issues.

Cover art/illustration via CryptoSlate

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.”

Posted In: Bear Market, Lending

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