Ex-Gensis Execs Raised Millions For Another Firm, As Their Company Was Collapsing

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Bitcoin cryptocurrency - Art by Rochdi Rais
Bitcoin cryptocurrency - Art by Rochdi Rais

Weeks before crypto lender Genesis filed for bankruptcy, three former employees of the crypto giant claimed they had secured millions of dollars for a new crypto hedge fund, according to correspondence viewed by CNBC.

Matt Ballensweig, a former Genesis employee sent a message to a prospective investor in mid-December about what he called: Hunting Hill Digital. Ballensweig said he had secured $2.5 million from Bessemer Venture Partners at a $30 million post-money valuation. He added that he was in the process of raising an additional $5 million.  

Bessemer told CNBC in an email that they are not an investor in Hunting Hill Digital.

The fund’s “flagship product” would go live in the first quarter of 2023, the message said.

Genesis, which is owned by Barry Silbert’s Digital Currency Group, filed for bankruptcy protection on Thursday. The crypto behemoth was hit by the implosion of FTX in November. In its bankruptcy filing, Genesis listed over 100,000 creditors, with aggregate liabilities ranging from $1.2 billion to $11 billion dollars.