Crypto exchange Gemini trying to recover $900 mn from Genesis

NEW DELHI: Crypto broker Genesis and its parent company Digital Currency Group (DCG) owe customers of the Winklevoss twins’ crypto exchange Gemini $900 million, the media has reported.

Gemini is trying to recover the funds after it was wrongfooted by last month’s failure of Sam Bankman-Fried’s FTX crypto group, the report said, citing people familiar with the matter.

Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm, Digital Currency chief executive Barry Silbert told shareholders last month.

Gemini, which runs a crypto lending product in partnership with Genesis, has now formed a creditors’ committee to recoup the funds from Genesis and its parent DCG, it added.

Genesis has hired investment bank Moelis & Company to explore options including a potential bankruptcy.