17 articles found
FTX and Genesis Near Agreement Amid Bankruptcy
Bankrupt crypto firms FTX and Genesis have reportedly reached a preliminary agreement to settle outstanding issues. The companies have agreed to void all mutual claims. This development was revealed in a letter sent to Bankruptcy Judge Sean Lane on July 27. The final decision and terms of the agreement, however, need to be officially approved by the court.
SEC doesn't let the crypto community rest
This time the SEC hits the crypto exchange Kraken over a possible violation of the Securities Act. Incoming CEO Dave Ripley has refused to delist tokens determined as securities under the Howey test and is now having troubles with the SEC. This case may be settled in the coming days and will make a decisive difference for the entire crypto community. It is also rumored that the SEC intends to ban retail staking. Genesis and Gemini keep their fingers crossed, as they have already stepped into Kraken's shoes once before.
Genesis cashed out right before the bankruptcy
Chainalysis investigators claim that a few hours before the announcement of bankruptcy, funds totaling about $155 million were withdrawn from the Genesis exchange: - 50,000 ETH to Coinbase - 20,000 ETH to Bitstamp - 5,000 ETH and 3.9 million USDT to Kraken - 7.7M FTM to Binance - 36 million USDT to an unknown wallet Some analysts speculate that this could be a partial repayment of Genesis' debt to creditors. Of course, it is the case! That's exactly what all bankrupts do before filing for bankruptcy.
More crypto dominoes are falling
Genesis Global also failed to stay afloat and filed for bankruptcy. It was reported that the exchange founders filed in the New York Southern District Court for Chapter 11 bankruptcy, which provides for "sale, capital raise or reorganization of debt. That is, the exchange can still be saved, but with a different owner. Genesis Trading owes creditors more than $3 billion. The company representatives claim that they have only $150 million in cash.
Genesis wipes away creditors' tears
At Genesis' first bankruptcy hearing, the company's lawyer expressed confidence that it would resolve its disputes with creditors by the end of the week. Genesis plans to exit the bankruptcy in 4 months from now. The company plans to pay employees and vendors first, and then to auction off its assets to pay creditors by May. A simple calculation of the math shows that Genesis holds $5 billion in assets and liabilities, while its debt estimates to $3.4 billion.
Which companies have exposure to Genesis
Genesis filed for Chapter 11 bankruptcy protection on Thursday. Now the major creditors started to become known and ready to comment. - The Gemini Exchange is the bankrupt's largest creditor. Its losses total more than $750 million. - Investment fund Mirana. Genesis owes the fund (which invested in platforms like Bybit and BitDAO) $151.5 million. - Decentraland. According to its representatives, it had a credit against Genesis of $7.8 million. - Stellar Blockchain has a claim for $13 million against the bankrupt company. - Coincident Cap confirmed that Genesis has $110 million in debt to them. All the creditors claim that Genesis' troubled liabilities won't affect their current operations and that any potential losses will be covered. However, they don't specify at whose expense. Genesis owes a total of $3.4 billion to its creditors.