Top 50 Genesis Creditors Entitled to $3.5B

Lavina Daryanani

Cryptocurrency lending firm Genesis officially filed for Chapter 11 bankruptcy a couple of hours back. As reported earlier today, the organization holds more than $150 million in liquid capital. The same will be utilized to support its ongoing business operations and facilitate the restructuring process.

The filing also went on to reveal the names of the largest creditors of the crypto lender. According to the official document, Gemini, VanEck’s New Finance Income Fund, Mirana, Cumberland and MoonAlpha Finance were part of the fifty largest creditors of Genesis. Mirana, for context, has invested in ByBit, while MoonAlpha Finance is associated with Babel Finance.

Babel Finance, on its part, was in the news in mid-2022 for losing $280 million in crypto, using customer funds. Alongside the likes of Celsius, Voyager, and Three Arrows Capital, even this firm went underwater last year.

As far as the exact numbers are concerned, Genesis owes Gemini Trust Company $766 million and VanEck’s New Finance Income Fund $53 million. Additionally, it owes trading firm Cumberland $18.7 million, crypto fund Mirana $151.5 million, and MoonAlpha Finance $150 million.

Other creditor names were obscured in the filing. Two unknown names were owed $462.2 million and $230 million.

Alongside Genesis Global, two of its other lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific, filed for voluntary bankruptcy. Notably, these three companies together have around 100,000 creditors in total.

Also Read: Genesis Officially Files For Bankruptcy

Genesis’s path forward

However, Genesis’s other subsidiaries involved in the derivatives, spot trading, and custody businesses, and Genesis Global Trading were not included in the filing. Their client trading operations are currently on.

Genesis’s proposed roadmap comprises a dual-track process in pursuit of a sale, capital raise, and equitization transaction. Treading on the said path would enable the business to “emerge under new ownership.” So, the company will essentially initiate a marketing and sale process to either monetize its assets or raise capital. Using the proceeds, it will pay back to creditors “fairly and equitably.”

However, if the marketing process does not result in a sale or capital raise, creditors will receive ownership interests in a reorganized company going forward. The above event puts an end to speculation that has been active for weeks after the FTX incident.

Also Read: FTX Recovers $5.5B Worth Assets: Reveals $415M Crypto Was Hacked