The amount of debt is increasing after Genesis’ lending platform stopped withdrawals.
Recently, it was reported that a group of customers using the Earn program of Genesis-affiliated cryptocurrency exchange Gemini were owed $900 million after Genesis’ lending unit stopped customer withdrawals on November 16. Things are not looking good for Genesis’ lending platform.
Genesis Owes Two More Companies
In addition to the group of Gemini clients previously reported to have $900 million in debt, Genesis has two other groups of creditors represented by lawyers.
According to a person familiar with the matter, customers locked in Genesis and seeking legal advice on the matter currently account for approximately $1.8 billion in loans. And this number is expected to increase.
Another source said a second group, which is a creditor from Genesis and has $900 million in loans, is represented by law firm Proskauer Rose. The amount of credit owed by the third group is unknown. The second source also said that the Gemini client group is also represented by the law firm Latham & Watkins.
In a letter to investors on November 23, Genesis stated:
“To agree on a solution that supports the overall liquidity of our loan business and meets the needs of clients; We have started discussions with potential investors and our biggest creditors and debtors, including Gemini and DCG [Digital Currency Group].”
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