# Crypto broker Genesis owes Gemini’s customers $900 million – FT Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Genesis and DCG owed $900M to Gemini Customers: Report Meta Description: Genesis & DCG owe Gemini $900 million, trying to recover funds after FTX failure. Creditors forming committee. Coindesk reports negotiation ongoing. URL: https://financedigest.com/crypto-broker-genesis-owes-geminis-customers-900-million-fthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-03t120738z1lynxmpeib205brtroptp4fintech-crypto-genesis-1736814771169-compressed.jpg) (Reuters) -Crypto broker Genesis and its parent company Digital Currency Group (DCG) owe customers of the Winklevoss twins’ crypto exchange Gemini $900 million, the Financial Times reported on Saturday. Crypto exchange Gemini is trying to recover the funds after Genesis was wrongfooted by last month’s failure of Sam Bankman-Fried’s FTX crypto group, the newspaper said, citing people familiar with the matter. Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm, Digital Currency Chief Executive Barry Silbert told shareholders last month. Gemini, which runs a [crypto lending](https://www.financedigest.com/what-crisis-high-stakes-crypto-lending-looks-here-to-stay.html "What crisis? High-stakes crypto lending looks here to stay") product in partnership with Genesis, has now formed a creditors’ committee to recoup the funds from Genesis and its parent DCG, the report added. Separately, Coindesk on Sunday reported that creditor groups in negotiation with Genesis currently account for $1.8 [billion of loans](https://www.financedigest.com/trafigura-enters-3-billion-loan-to-supply-germanys-sefe-with-gas.html "Trafigura enters billion loan to supply Germany’s Sefe with gas"), with that number likely to continue to grow. A second group of Genesis creditors, with loans also amounting to $900 million, is being represented by [law firm](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES") Proskauer Rose, CoinDesk said citing a source. Genesis and Gemini did not immediately respond to Reuters’ request for comment. Genesis has hired investment bank Moelis & Company to explore [options including](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") a potential bankruptcy, the New York Times reported last month, citing three people familiar with the matter. Genesis Global [Capital suspended customer redemptions in its lending business](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") last month, citing the sudden failure of crypto exchange FTX. [Crypto trading platform](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") FTX filed for bankruptcy protection in the United States on Nov. 11 in the highest-profile crypto blowup to date, after traders pulled [billions from the platform in three days and rival exchange Binance abandoned a rescue deal](https://www.financedigest.com/australias-macquarie-explores-6-billion-deal-for-britains-mg-sky-news-reports.html "Australia’s Macquarie explores billion deal for Britain’s M&G, Sky News reports"). (Reporting by Shubhendu Deshmukh and Rhea Binoy in Bengaluru; Additional reporting by Akriti Sharma; Editing by Toby Chopra, Christina Fincher and Diane Craft) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---