Genesis Creditor Groups' Loans Amount to $1.8B and Counting: Sources

Customers whose money is locked up on trading and lending platform Genesis and who have taken legal advice on the matter currently account for some $1.8 billion of loans, according to a person familiar with the situation. And that number looks like it will continue to grow.

The Financial Times recently reported that a group of customers using cryptocurrency exchange Gemini’s Earn program, which is tied to Genesis, were owed $900 million after Genesis’ lending unit halted customer withdrawals on Nov. 16.

A second group of assorted Genesis creditors, with loans also amounting to $900 million, is being represented by law firm Proskauer Rose, a second person told CoinDesk.

The Proskauer group takes the tally to $1.8 billion, with more to come in the form of a third ad hoc group being represented by Kirkland & Ellis, the law firm representing bankrupt crypto firms Celsius Network and Voyager Digital, the second person said. The amount of loans this third group is owed is not known. In addition, the Gemini customers group is being represented by law firm Latham & Watkins, the second person said.

In a letter to investors on Nov. 23, Genesis said it had “begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG [Digital Currency Group], to agree on a solution that shores up our lending business’ overall liquidity and addresses clients’ needs.”

Genesis declined to comment on this story. Proskauer Rose, Latham & Watkins and Kirkland & Ellis did not respond to requests for comment by press time.

Genesis and CoinDesk are both owned by DCG.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.