Genesis owes a crypto exchange led by the Winklevoss twins $900 million, the Financial Times reported.
According to its website, Genesis, which has $2.8 billion in active loans, tweeted that redemptions and new loans were being halted on November 16. The firm cited “unprecedented market turmoil” resulting in a lack of disposable funds.
Gemini has a crypto lending product through its partnership with Genesis, which acts as its broker.
The FTX downfall reverberated through the crypto market, weighing down on Gemini, co-founded by Tyler and Cameron Winklevoss. The exchange is trying to recover its customers’ funds, according to the FT.
Gemini has built a committee made up of creditors to try to reclaim its funds from Genesis and DCG. Genesis has been trying to raise emergency funds and hired an investment bank to look at potential solutions to repay the funds, the newspaper reported.
Gemini tweeted on November 29: “We do not do anything with your digital assets unless explicitly authorized and directed to do so by you. We are more confident than ever that asking for permission, not for forgiveness — is the right way to build trust with you and a lasting business.”
