The year 2022 has been one of the toughest years for global markets, especially cryptocurrencies. The crypto world has seen several adverse events like bankruptcy where big companies such as FTX, Three Arrows Capital, Genesis and Voyager saw their downfall after the collapse of Terra (LUNA) in May 2022. That’s all just not that, Bitcoin which was selling at around $48,000 at the start of 2022 has now fallen towards the $16,000 area.
The series of bankruptcies of these prominent companies began with Three Arrows Capital and Genesis Trading, a cryptocurrency market operator and finance company. According to the sources, Genesis’ losses are linked to over-leveraged fund manager Three Arrows Capital and Hong Kong crypto financier Babel Finance.
Genesis owes $900 million to Gemini users
Now, the latest updates emerge with Gemini co-founder Cameron Winklevoss’ open letter to the owner of Genesis. The letter claims that Genesis and its parent company Group of digital currencies (DCG) owes $900 million to Gemini customers.
According to reports, after the bankruptcy of FTX, Genesis has stopped all withdrawals which puzzled nearly 340,000 Gemini users. The letter also mentions a deadline of January 8, 2023 to resolve the issue.
DCG to blame for Terra’s collapse
It seems that DCG has attracted major problems because even Three Capita ArrowsFounder Zhu Su blamed DCG along with FTX for the downfall of Terra (LUNA) and STETH. According to Zhu Su DCG, instead of restructuring ignored the issue. The 3AC founder believes DCG and FTX misled the crypto community even when they knew Genesis was collapsing.
Zhu Su is convinced that Genesis is at high risk of going bankrupt in the coming days. He says that instead of approaching the Department of Justice, creditors are still hoping for help from Barry Silbert, CEO of DCG.
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Elena is an expert in technical analysis and risk management in the cryptocurrency market. She has over 10 years of writing experience – hence, she is an avid journalist with a passion for finding new insights into the age of crypto.