US-based crypto firm Genesis has owed $900 million to customers of crypto exchange Gemini.
In these days when the crypto bear market continues, the effects of bankruptcy and collapse events are felt heavily. FTX, one of the largest cryptocurrency exchanges in the world, has brought the market into a new era with the liquidity crisis and bankruptcy process. In this new era, cryptocurrency exchanges have focused on transparency and proof-of-reserve systems. In the thriving and adopted crypto industry, bankruptcies are incessant. Finally, Genesis has come to the fore again amid bankruptcy and debt claims. According to the Financial Times, Genesis owes a significant debt to Gemini customers.
Genesis and Digital Currency Group Owe to Gemini Customers
Crypto company Genesis has put the industry in danger by stating that it has entered difficult processes. The company is working with the Gemini exchange for the Earn protocol. Recently, Gemini announced that it was affected by problems due to the Earn protocol.
Genesis and its parent company, Digital Currency Group, are working hard to overcome the liquidity crisis. But in the midst of all these processes, $900 million of Gemini customers are stuck with the distressed company.
Gemini exchange is trying to get the funds back. In addition, the creditors committee formed by the exchange took action to compensate the assets. It is expected that $ 900 million, which is stated as client assets of the exchange, will be covered by the troubled company.
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