Crypto lender Genesis owes $900 million to Gemini crypto exchange clients

Major cryptocurrency lender Genesis Trading and its parent company Digital Currency Group (DCG) owed $900 million to users of crypto exchange Gemini.

On December 3, 2022, the Financial Times reported that a Gemini Earn user lost his $900 million when Genesis, the external company that managed interest rate services, went bankrupt following the FTX bankruptcy. . Crypto companies continue to go bankrupt like dominoes after crypto exchange FTX and its sister investment firm Alameda Research went bankrupt, potentially taking on more than a million of his creditors. He made $175 million in his FTX account at Genesis - the situation continued to deteriorate until the company was forced to withdraw and cease operations. I fear that the Genesis issue will also bring down parent company Digital Currency Group, and lead to the sale of huge amounts of Bitcoin and Ethereum held by wealth management subsidiary Grayscale Investments to the mega-conglomerate. This will flood the market with over 633,000 BTC ($10.8 billion) and over 3 million Ethereum ($3.9 billion). 

Genesis hired investment bank Moelis & Company last month to weigh its options, including the possibility of bankruptcy.