The Proskauer Rose law firm has presented the number as being $1.8 billion. There is a certainty that this is not the final number. The number would increase through the ad hoc group, which is now represented by Kirkland & Ellis. Ellis has also represented companies such as Celsius and Voyager Digital. Another famous law firm, Latham & Wilkins, represents Gemini’s customers.
In its letter to the investors, which was sent last month, Genesis mentioned that it:
(…) begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG [Digital Currency Group], to agree on a solution that shores up our lending business’ overall liquidity and addresses clients’ needs.
In the month of November, Genesis Global Capital suspended customer withdrawals on its lending platform. The reason provided was the sudden collapse of the crypto exchange platform FTX.
The beleaguered crypto trading platform FTX filed for bankruptcy protection in the US in the middle of last month. The failure of FTX has been accounted for as one of the major blows to the crypto industry holistically, and it had a considerable impact on the broader market.
The crash had made traders take out billions from the platform in only three days. Furthermore, Binance canceled its rescue deal to buy out FTX at the last minute.
Featured image from Unsplash, Chart: TradingView.com