Genesis Global Inches Closer To Collapse• January 6, 2023 11:01 am • Comments
Genesis Global and its parent company, Digital Currency Group, are reportedly facing major trouble…
We recently reported that Cameron Winklevoss, one of the co-founders of Gemini, recently sent somewhat of an ultimatum letter to Barry Silbert, CEO of Digital Currency Group, in an effort to recover locked user funds from Genesis.
Winklevoss claimed that Gemini was holding close to a billion dollars in customer funds hostage with bad-faith stall tactics.
At around the same time, Zhu Su, publicly stated that Digital Currency Group was worthless and had a value of $0—claiming that the conglomerate would collapse in the next couple of days.
Those troubles and rumors now carry even more weight due to the most recent development regarding Genesis Global…
According to sources, Genesis Global has slashed 30% of its workforce—a sign that doesn’t bode well for the struggling crypto firm and is emblematic of the broader market.
Genesis Global and its parent company, Digital Currency Group, seem to be inching closer to collapse—will they share the fate of FTX?
Here’s what we currently know:
JUST IN: Genesis Global Trading, one of the world’s largest crypto lenders is considering filing bankruptcy and will be laying off 30% of employees.
The ripple effects from the collapse of FTX continue to spread.
— The Kobeissi Letter (@KobeissiLetter) January 5, 2023
Crypto lender Genesis Global Trading has laid off 145 employees in a second round of layoffs in six months. The firm is considering bankruptcy as the FTX contagion continues to spread. Genesis was hit hard by the c ollapse of FTX because it had $175 million locked in an FTX
— John bongard Aupito (@bongard_Aupito) January 6, 2023
Bloomberg provided more details:
The dismissals follow a separate round of job eliminations last year that saw a number of key leadership departures, and signal further upheaval at the New York-based firm amid an extended rout in the digital-assets market. The company now has 145 employees remaining, according to a Genesis spokesperson.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” said a Genesis spokesperson in an emailed statement. “These measures are part of our ongoing efforts to move our business forward.”
JUST IN: Cameron Winklevoss, co-founder of Gemini exchange, sent an open letter to Digital Currency Group CEO Barry Silbert saying Genesis used "malicious" distraction tactics, and owes them over $900M, giving Barry Silbert a deadline of Jan 8th. pic.twitter.com/QrO5ZHCXw6
— CryptoVinco (@CryptoVinco) January 2, 2023
HQ launched last year and was initially described as a “re-envisioned multi-family office.”
— Kate Clark (@KateClarkTweets) January 5, 2023
According to Bitcoin.Com, Genesis’ troubles are mounting:
A demand for class arbitration in a case that pits three Gemini Earn users against Genesis Global Capital (GGC), its parent the Digital Currency Group (DCG), and Genesis Global Trading has been filed with the American Arbitration Association (AAA). According to a statement released by Silver Golub & Teitell, the law firm representing the claimants. GGC and the related entities are accused of breaching the terms of the so-called Master Agreement.
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.