The Winklevoss twins owed $900 million to a crypto broker due to the FTX outbreak

A crypto exchange owned by the Winklevoss twins is trying to recover $900 million from a crypto broker with cash that was wiped out by the FTX collapse. report.

New York-based Gemini – Tyler and Cameron Winklevoss began their famous beef with former Harvard classmate Mark Zuckerberg after discussing who founded Facebook – in a “mining” program where Gemini lent its coins to a crypto broker cooperated with customers. Genesis in exchange for a fixed income stream.

But Genesis said it may not see all of its earnings after facing “unprecedented market turmoil” following the collapse of FTX last month. Financial Times.

The Winklevosses have formed a creditors’ committee to try to recoup their $900 million investment from Genesis and its parent company, Digital Currency Group (DCG).

The Winklevoss twins founded Gemini in 2014
Bloomberg via Getty Images

The Winklevoss twins founded Gemini in 2014, becoming the first US-based licensed Ethereum exchange.

Meanwhile, Genesis is trying to raise emergency cash to pay off its debt and has hired investment bank Moelis & Co to help figure out how, the FT reports.

Genesis has about $2.8 billion in active loans, according to its website. Its parent company, DCG, has $2 billion in debt, of which $1.7 billion belongs to its subsidiary Genesis.

DCG was founded in 2015 and is one of the largest investors in the crypto industry, valued at $10 billion last year.

Genesis, run by billionaire Barry Silbert, lost $1.1 billion on a loan from hedge fund Three Arrows Capital over the summer. According to the FT, DCG assumed the liabilities of Genesis, which subsequently owed Genesis $1.1 billion.

FTX, founded by Sam Bankman-Fried, filed for bankruptcy protection on Nov. 11 after traders pulled billions from the platform in three days at the height of the crypto boom and rival exchange Binance pulled out of a bailout deal.


Related Articles

Latest Posts