Crypto lender Genesis Global Capital has officially filed for chapter 11 bankruptcy. Gemini exchange co-founder Cameron Winklevoss has given an update regarding the company’s Earn program following the bankruptcy filing of Genesis.
Cameron believes that this is a significant step in the right direction for them to be able to retrieve the assets of Earn users. He stated that they have been working very hard to negotiate a suitable solution with Genesis’s parent firm DCG and its owner Barry Silbert, but that they continue to refuse them a fair settlement despite their efforts.
Cameron explains that the fact that Genesis has sought the protection of the bankruptcy court is excellent news because it means the company will be subject to judicial monitoring and will be obliged to produce discovery into the maneuvers that took them to this position.
Most importantly, he emphasizes that the fact that Genesis chose to file for bankruptcy does not in any way absolve Barry Silbert, DCG, or any other wrongful actors from responsibility for their actions. According to Cameron, Gemini is planning to sue Silbert, DCG, and anybody else who helped Genesis defraud its 340,000+ Earn users and others.
Genesis partnered with Gemini on the now-defunct Earn program and its bankruptcy filing shows that it has between $1 billion and $10 billion in obligations and assets, and owes over 100,000 creditors.
Because of Genesis, DCG has been the subject of controversy and financial strain recently. The company also owns the popular crypto media outlet CoinDesk, which is currently on sale for $200m. Cardano creator Charles Hoskinson has expressed interest in purchasing it.
