Genesis Reportedly Has $2.8 Billion in Outstanding Loans

Vignesh Karunanidhi
Genesis Reportedly Has $2.8 Billion in Outstanding Loans
Source: Unsplash

The cryptoverse has seen a lot of chaos recently. For many, the past few months have been a nightmare. Investors are afraid due to bankrupt companies and missing founders.

Due to the significant exposure caused by FTX’s demise, Genesis Global Trading decided to stop accepting withdrawal requests. According to recent reports, the platform was likely to file for bankruptcy.

It should be noted that the demise of Three Arrows Capital had an impact on Genesis as well. It was revealed in July that Genesis had loaned approximately $2.36 billion to 3AC. In one of the recent updates, it was also revealed that Genesis sought investment from Binance. However, CZ’s exchange decided not to move forward with the request.

In one of the recent reports from Bloomberg, it was revealed that Genesis has $2.8 billion in outstanding loans.

Genesis’s balance sheet shows $2.8 billion in outstanding loans

As per the reports from Bloomberg, Genesis’s balance sheet shows $2.8 billion in outstanding loans. Thirty percent of its lending is related to its parent company, Barry Silbert’s Digital Currency Group.

One of the key lending activities has been to Genesis Global Trading. It is a brokerage unit of the firm. Silbert commented on the loans, stating that they were made during the ordinary course of business.

Silbert also highlighted that DCG owes $575 million to Genesis. He also mentioned in a letter that a promissory note for $1.1 billion has been made and is due by June 2032.

“Let me be crystal clear: DCG will continue to be a leading builder of the industry, and we are committed to our long-term mission of accelerating the development of a better financial system,” Silbert said.

Even though there is no imminent probability of Genesis Global Capital filing for bankruptcy, it might be unavoidable without new funding.