The crypto exchange FTX was one of the most prominent companies in the crypto industry. Unfortunately, that is also the reason why so many companies have been caught up in it FTX bankruptcy. Not one of the least is Genesis. Unfortunately, this institutional company would owe $900 million to the crypto exchange Gemini.
Crypto exchange Gemini wants to see money from Genesis
The trading platform Genesis focuses specifically on institutions, which is why it is such big crypto news that even this platform has financial problems. It denied last week that it has no plans for an immediate bankruptcy, but it does need financing quickly.
Unfortunately, many other companies have exposure to FTX as well. Financial Times writes that the Genesis owes $900 million to Gemini, the exchange of the twins Tyler and Cameron Winklevoss. Financial Times sources claim that Gemini is trying to get the money back from Genesis, but like any company with financial problems, it’s not easy.
The lawyers of Genesis can prevent Gemini from having the right to reclaim the capital directly, as this could further jeopardize Genesis. If many companies have exposure, a bankruptcy usually takes a long time.
Ook Gemini in trouble?
Genesis is one of the partners in Gemini’s Earn service, which allows Gemini customers to earn a dividend on their coins. Genesis will therefore provide this return, but Gemini will have transferred the money from customers to Genesis for this.
It is not clear how financially stable Gemini is, let alone what consequences this situation will have. It has not yet made Proof-of-Reserves available, but critics say this model is pointless at all. Without an insight into the debts of exchanges, the assets of customers do not say enough. There are rumors that Gemini is the next exchange to fall after FTX, although so are Crypto.com, KuCoin and others.
