Dec 3 (Reuters) – Cryptocurrency Exchange Gemini is trying to collect more than $900 million from its client, Genesis, and its parent company Digital Currency Group (DCG). This was reported on Saturday by the Financial Times.
Gemini, owned by the Winklevoss twins, is attempting to recoup the funds after the failure of Sam Bankman-Fried’s cryptocurrency lending firm. According to people familiar with the situation, the FTX cryptocurrency group was established last month.
The parent company, Digital Currency Group, owns Genesis Trading, a manager of cryptocurrency assets, and Grayscale, which owes $575 million to Genesis’s digital currency lending arm. CEO Barry Silbert discussed the matter with shareholders last month.
Partnering with Gemini, which operates a crypto lending product, Genesis has created a committee of creditors, which includes DCG and its parent company, to try to recover the funds.
Neither Genesis nor Gemini immediately responded to Reuters’ requests for comment.
Genesis has also hired investment bank Moelis & Company to explore its options, including bankruptcy, according to the New York Times, citing three people with knowledge of the matter last month.
Genesis Global Capital suspended client swaps at its crypto lending firm last month due to a sudden failure in the FTX cryptocurrency exchange.
FTX filed for bankruptcy in the US on Nov. 11 after traders pulled billions from the platform in three days. Binance pulled out of a bailout deal.
Reporting By Shubhendu Deshmukh Rhea Binoy In Bengaluru; Edited By Toby Chopra Christina Fincher
