Crypto lender Genesis Global files for Chapter 11 bankruptcy in New York, listing the estimated range for both assets and liabilities as between $1B and $10B
the parent company of Genesis - continue to refuse to offer creditors a fair deal. Fred Walton / @fredwalton216 : 1) Crypto thread on January 19. DCG allegedly has received offers for CoinDesk exceeding $200M in recent weeks. Considering DCG purchase price of $500K, DCG would receive a 39,900% return on its initial investment. https://twitter.com/... Gergely Orosz / @gergelyorosz : If the name Cameron Winklevoss sounds familiar to you: you've probably also watched The Social Network and yes, this is one of the twins who supposedly came up with the idea of Facebook at Harvard. Apparently got into crypto big time, and now (probably?) losing investors' money. https://twitter.com/... @watcherguru : JUST IN: #Crypto firm Genesis files for Chapter 11 bankruptcy. Janie Johnson / @jjauthor : Cryptocurrency lender Genesis Global Holdco and two of its lending subsidiaries filed for bankruptcy protection, the latest domino to fall after the failure of exchange giant FTX https://www.wsj.com/... @anoniemxbt : It's funny how Binance gets attacked the most but has not been involved in any of the situations that have caused the market to nuke https://twitter.com/... Evan Van Ness / @evan_van_ness : Genesis files for bankruptcy. WHO ARE THE CREDITORS who are owed 462m, 447m, and 230m? The best time to withdraw from “CeFi” was the day you deposited. The second best time is today. https://twitter.com/... Dylan LeClair / @dylanleclair_ : For posterity: DCG subsidiary Genesis Global has filed for bankruptcy in the Southern District of New York https://twitter.com/... @autismcapital : Genesis officially files for Chapter 11 bankruptcy. This letter was just sent to clients. https://twitter.com/... @doveywan : The expected optimal play comes at last and the next episode will auto unveil itself in the following court docs https://twitter.com/... Adam Cochran / @adamscochran : Biggest L's from Genesis include Abra, Coinhouse, Stellar, lots of funds and lots of HNWI https://twitter.com/... Wu Blockchain / @wublockchain : Genesis Global Holdco, LLC ("GGH") and two of its lending business subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. https://www.businesswire.com/ ... Emily Nicolle / @emilyjnicolle : Genesis is laying the groundwork for a bankruptcy filing as soon as this week. The company is working toward a restructuring plan and had swapped proposals with its creditors, some of whom had suggested receiving a mix of cash and equity from DCG https://www.bloomberg.com/...
BloombergKevin Simauchi
Context & Ripple Effects
Genesis's filing follows DCG's effort to raise capital to avoid a Genesis bankruptcy and a reported plan to sell venture assets after the broker's creditor shortfall exceeded $3 billion. The Chapter 11 process moves that funding pressure into court supervision.
The creditor list makes the stakes concrete: Genesis owed more than $3.6 billion to its top 50 creditors, including Gemini Trust Company. The filing establishes the venue for resolving those claims and DCG's disputed role in the workout.
First-order effects
Genesis Global Holdco and two lending subsidiaries enter Chapter 11 in New York, placing creditor recoveries and the companies' assets under a court-led restructuring process.
DCG's attempts to avert a Genesis filing through fundraising are overtaken by the restructuring, while its reported venture-asset sales become more consequential as potential sources of liquidity for the broader creditor dispute.
Gemini and other major creditors gain a formal venue to contest proposed recoveries, replacing negotiations over what DCG considers a fair deal with bankruptcy-process leverage.
Third-order effects
The case reinforces how closely a crypto lender's creditor outcomes can depend on financing and asset decisions at its parent company, exposing the limits of group structures when a lending subsidiary fails.
If comparable failures continue to route through Chapter 11, creditor recoveries and court-supervised disclosures—not private rescue financing—will increasingly determine the terms of crypto-lending wind-downs.
The trend: Crypto-lending failures are shifting from parent-backed rescue attempts toward court-supervised restructurings that test the separation between lenders and their corporate groups.
1/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.
Full disclosure: 1. Mirana is the investment arm of bybit. 2. Mirana only manage some bybit company asset. Client fund is separated snd bybit earn product doesn't use mirana. 3. The reported 151m has abt 120m of collateralized positions which mirana had already liquidated. https:…
#PeckShieldAlert ～75k $ETH ($113.7M) and3.9M $USDT transferred from Genesis Trading: OTC Desk to crypto-exchanges Coinbase, Bitstamp and Kraken ~36M $USDC transferred from Genesis Trading: OTC Desk to a new address 0x81b3...543 https://twitter.com/...
.@donutapp for $78m Another one of those CeDeFi lending apps born out of the 0 interest rate and never ending stream of VC money? https://twitter.com/...
The Genesis bankruptcy was priced in. Everyone knew it was coming. Not that interesting. What's interesting is thinking through the potential 2nd and 3rd order knock on effects that the market doesn't fully appreciate yet.
1) Crypto thread on January 19. DCG allegedly has received offers for CoinDesk exceeding $200M in recent weeks. Considering DCG purchase price of $500K, DCG would receive a 39,900% return on its initial investment. https://twitter.com/...
#Gemini staying out of Chapter 11 for now. Not sure how long that can last. The SEC has already started action. Creditors will come next I'm sure. I don't expect them to not seek protection soon. https://twitter.com/...
3AC borrowed from Genesis borrowed from Babel and all 3 degened w/clients' fund, the whole chain blew up Projects lent to Genesis expected to extend runway with modest yield, lost multi-year runway, and likely drained entire profits they made in the bull what a cluster f https://…
Genesis owes over $3.5 billion to its top 50 creditors, which includes @Gemini, @CumberlandSays, Mirana and others, according to the crypto lender's bankruptcy filing. @thesamreynolds reports. https://www.coindesk.com/...
Genesis Global Holdco, LLC ("GGH") and two of its lending business subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. https://www.businesswire.com/ ...
2/ While we have been working around the clock to negotiate an acceptable solution, @BarrySilbert and @DCGco — the parent company of Genesis - continue to refuse to offer creditors a fair deal.
1. Gemini bribes MakerDAO to collateralize DAI with GUSD 2. Greedy MakerDAO mints 500m DAI for 500m GUSD supplied by Gemini VC Parafi 3. Genesis falters, MakerDAO wants out of GUSD 4. Parafi says nah, we're all in this 2gether now brahs 5. Genesis is bankrupt 6. ???
@Dogetoshi Super sketch that the lending desk Barry owned owed Decentraland $55m when DCG and Grayscale are $MANA investors. Did they buy from the team and then just get cash lent back to them? How the fuck did Decentraland even have $55m left these days?
The bankruptcy of Genesis has most likely been priced in. The key psychological factor influencing the market right now is ‘how much worse can it get’ which drives the inclination to bid. Those waiting for drastically lower prices will be left sidelined. https://twitter.com/...
Obviously a funny tweet but making sure clear from my end: It's genesis, idgaf what's going on, I'll be at my best and in no universe will anything that happens be an excuse to lose If you beat me you beat me, that's it Fuck Phobs https://twitter.com/...
As Genesis files for bankruptcy, we revisit the Funds Leaderboard Their total balance is $397M* *Incl. only ETH & ERC-20 assets based on our wallet labels https://twitter.com/...
Cryptocurrency lender Genesis Global Holdco and two of its lending subsidiaries filed for bankruptcy protection, the latest domino to fall after the failure of exchange giant FTX https://www.wsj.com/...
Alright, so now Genesis has filed for bankruptcy ( in positive conversation with its creditors ) Everyone expected this news to drop Now can we please send BTC to $24k
Let's see some screenshots of short position sizes from CT's notorious bears No % profit screenshots after the fact w/ size redacted - no larping about the market falling apart If you think Genesis will nuke us to hell then put your balls on the line and prove it 🤷🏻♂️
Genesis is laying the groundwork for a bankruptcy filing as soon as this week. The company is working toward a restructuring plan and had swapped proposals with its creditors, some of whom had suggested receiving a mix of cash and equity from DCG https://www.bloomberg.com/...
Genesis files for bankruptcy. WHO ARE THE CREDITORS who are owed 462m, 447m, and 230m? The best time to withdraw from “CeFi” was the day you deposited. The second best time is today. https://twitter.com/...
It's funny how Binance gets attacked the most but has not been involved in any of the situations that have caused the market to nuke https://twitter.com/...
And there it is - Genesis has filed for Chapter 11 bankruptcy protection. It has less than $500 million in assets, but its largest creditor alone has a claim of $765 million 😵💫🥴 Tiresome... https://twitter.com/...
2/ Some of Genesis' largest CEX transactions in the last 30 days $51.9M USDC net deposits to Coinbase $43.7M USDT net withdrawals from Kraken $28.7M ETH net deposits to Bitstamp $19M USDT net withdrawals from OKX $10.8M USDT and $7M USDC withdrawals from Binance https://twitter.c…
If the name Cameron Winklevoss sounds familiar to you: you've probably also watched The Social Network and yes, this is one of the twins who supposedly came up with the idea of Facebook at Harvard. Apparently got into crypto big time, and now (probably?) losing investors' money. …
Major differences between #Genesis & #Celsius so far in the early days is Genesis signal they likely won't be returning (probably regulatory reasons) & instead work to distribute assets from the beginning.
Gemini is the biggest creditor in the Genesis bankruptcy. Several of the other largest creditors have been redacted. Interesting to see Van Eck, Cumberland, Abra, Marcelo Claure, and other familiar names. This company touches almost every firm in the space directly or indirectly.
The largest creditors include the Gemini lenders with 765m; followed by Bybit's Mirana with 151m; Babel Finance with 150m; Coincident Capital 110m and other 50 largest unsecured claims. https://restructuring.ra.kroll.com/ ...
DCG is the most disappointing company to me in crypto, as they had “adult” leadership / operators , so didn't expect the shenanigans that are now playing out in public
Genesis owes more than $3.6 billion to top 50 creditors, and they only have less than $500 million in assets! The situation is worse than you think. Few important things you can't afford to miss!🧵👇🏻 https://twitter.com/...