Genesis had $5.1B in liabilities, court documents show.

Bankruptcy court documents filed by Genesis interim CEO Dirar Aslam show that the now-defunct crypto-lending platform owed $5.1 billion to its lenders weeks before FTX halted repayments. what was

Genesis begins bankruptcy proceedings.

Today, troubled crypto lending service Genesis filed For Chapter 11 bankruptcy protection in the Southern District of New York Bankruptcy Court. Its chief executive cited the company’s deteriorating financial condition as a result of its liquidation in November 2022.

Interim CEO Derrar Islam revealed to the court that the company collected $5.1 billion in dues before its lending platform halted repayments after Genesis’ FTX infection was uncovered.

In addition to Genesis Global Capital LLC, two other entities also filed for bankruptcy earlier today: Genesis Global Holdcoits parent company, and another lending unit, Genesis Asia Pacific.

In his first day of motion in New York court, Islam detailed the events that led to the firm’s downfall, saying the crisis was fueled by the exposure of Sam Bankman Freud’s FTX, as well as the fear of its customers. It was born out of harassment. “Running the Bank”

He added that bankruptcy proceedings would “encourage all stakeholders to move quickly toward an agreed resolution that avoids the expense and uncertainty of litigation.”

Of the $5.1 billion owed to Genesis creditors, GeminiThe Winklevoss twins hold the largest share, currently worth about $900 million.

The heads of the two companies have recently had a war of words. On January 10, Cameron Winklevoss Called DCG (Digital Currency Group Inc.) is the parent company of Genesis Global, to remove DCG CEO Barry Silbert, citing concerns about his management ability.

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