Crypto Trading Firm Cumberland DRW Disputes Genesis Exposure
The Chicago-based firm was listed among Genesis' creditors in the amount of $18 million, but Cumberland said that's too high. The document includes "misleading and incorrect information," Cumberland tweeted.
Crypto trading firm Cumberland DRW has disputed the amount Genesis Global Capital, the crypto lender that filed for Chapter 11 bankruptcy protection in the U.S. on Thursday, says it owes Cumberland.
The Chicago-based firm was listed in a bankruptcy document as a Genesis creditor in the account of $18 million. Cumberland described its inclusion in he bankruptcy filing as "misleading and incorrect information," in a Friday tweet.
"Under the terms of our agreement, on November 16, we notified them that we were surrendering our cash collateral and liquidating their crypto to close out the loan," Cumberland said. "This left an outstanding balance due to us of approximately $46,064.34, consistent with our November tweet. We have established no further borrows from Genesis and have no additional exposure."
In its bankruptcy filing, Genesis Global Capital estimated more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets. Holding company Genesis Global Holdco and partner firm Genesis Asia Pacific estimated their assets and liabilities in the $100 million and $500 million range, respectively.
All three entities fall under the umbrella of Digital Currency Group, which is also the parent company of CoinDesk.
Genesis declined to comment when contacted by CoinDesk.
UPDATE (Jan. 20, 16:10 UTC): Adds that Genesis declined to comment.
CORRECTION (Jan 20, 17:55 UTC): Genesis Global Holdco is a holding company. DCG is the parent company.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.