The saga surrounding crypto lending platform Genesis and its parent company Digital Currency Group (DCG) does not seem to be over for the time being. Yesterday, Genesis told investors that it is frantically looking for a solution, but that it will most likely take more time. Genesis, and other crypto platforms such as Gemini and Bitvavo, ran into problems after the collapse of the crypto exchange ftx.
Problems at Genesis and DCG also affect Bitvavo
The interim CEO of Genesis, Derar Islim, yesterday called on customers to keep calm about the unpleasant situation. According to Islim, everything indicates that a solution will come sooner or later, but that this solution will simply need more time, he said. to The Block:
“While we are committed to acting as quickly as possible, this is a very complex process that will require some additional time. We believe we can find a solution.”
Genesis is currently working hard to keep itself running. They do this by staying in constant dialogue with DCG and various advisers. All options are being considered to at least safeguard customers’ assets, said CEO Islim:
“We continue to work with our advisors, in conjunction with DCG and advisors appointed by different client groups, to evaluate options to preserve client assets and move the business forward.”
In November Genesis halted withdrawals for all clients after they were no longer able to comply with withdrawal requests. In addition, Genesis itself would certainly still $900 million owe to associated company Gemini that evens got into trouble.
Gemini and Bitvavo
A few days ago Gemini co-founder Cameron Winklevoss lashed out at DCG CEO Barry Silbert. According to Winklevoss, Silbert would deliberately slow things down with all the consequences that entails. Winklevoss calls Silbert’s behavior “completely unacceptable and unconscionable.”
Also Bitvavo responded back to the situation this week. The Dutch crypto exchange has yet to recover $280 million from DCG. Nevertheless, remains Bitvavo repeating over and over again that the company has no liquidity problems and that customers should not worry about their funds.