Through its ground-breaking combination of features like smart contracts, Ethereum is used for a variety of innovative applications in finance, web browsing, gaming, advertising, identity management, and supply chain management. While Bitcoin’s innovative decentralized network and cryptocurrency was a groundbreaking achievement, Ethereum has expanded on its predecessor’s vision of a decentralized payments system building a global computer network that links users to a marketplace of decentralized applications (dApps) offering unprecedented efficiency, security, and user control. One can only hope that these creditor groups are able to get some relief out of this.Ethereum Blockchain: Background and Use Cases Sadly, the only way this could be neatly wrapped up is if FTX were to return customer funds which is not likely (at least not in full). FTX’s direct creditors are already pegged at around 1 million but as this Genesis issue shows, there is also the money that its creditors are owing. If there is one thing that is obvious from this whole saga, it is that a lot of people are being owed money. If Genesis chooses to pursue this route, it will join the likes of BlockFi which ended up filing for bankruptcy after exposure to FTX. Around the same time, Genesis hired investment bank Moelis & Company to look into a possible bankruptcy filing. In a recent letter to customers, the company said that it is considering its next move forward that would benefit everyone. Genesis, on its part, is reportedly considering a range of options. And given the current state of FTX and its Australian liquidator noting that customers might struggle to get all their funds recovered, the situation for its creditors looks dire. In total, these groups are alleging that Genesis owes a combined $1.8 billion. A third group of creditors allegedly exists but the amount they are owed is not yet public knowledge. In response to this, Gemini has formed a creditor group of its own that is seeking to recoup some of these funds. Back in November, Genesis had suspended customer withdrawals and in the weeks following this, customers are still shut out of their accounts.Īs per CoinDesk, the amounts owed to these customers clock in at around $900 million. There are its customers, specifically users of its Earn Program, who now find themselves unable to access their funds and some of whom are taking the legal route. This money is $575 million specifically owed by its parent company Digital Currency Group to Genesis’ crypto lending arm, as revealed by its Chief Executive Barry Silbert.Īnd this is not all the lender has to worry about. As such, money that it owes to other institutions is currently stuck in limbo. Just like several companies including BlockFi and SALT, Genesis sadly had significant exposure to FTX. As per a report from the Financial Times, the former is seeking millions from the latter in the wake of FTX’s collapse. Two companies whose financial statuses we now know more of are crypto exchange Gemini and crypto Lender Genesis. Was your crypto exchange of choice solvent? Would your lender become the next platform to suddenly halt withdrawals? These were the questions on everyone’s mind. From those who scrambled to release proof of reserves to customers and those who did not, there was a palpable urgency within the industry. In the last month or so, we have seen the financial state of all sorts of crypto companies being called into question.
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