Two Genesis Creditors Describe Their Frustrations With the Bankrupt Crypto Lender - Ep. 565

2023-11-04

Two Genesis creditors, BJ and Branden, who prefer to use pseudonyms for security reasons, spoke with Unchained about the alleged fraud by the crypto lender and its parent company, Digital Currency Group (DCG). The discussion is one of the first times Genesis creditors have spoken with a media organization about the situation. BJ and Branden explain how they gave more loans to Genesis after it took a $1.1 billion hit from the liquidation of Three Arrows Capital and how they then came to be members of the ad hoc group, a collective of Genesis customers who came together to try and save the company from ...

BJ and Branden explain how they gave more loans to Genesis after it took a $1.1 billion hit from the liquidation of Three Arrows Capital and how they then came to be members of the ad hoc group, a collective of Genesis customers who came together to try and save the company from bankruptcy.

They talk about how they now want DCG to pay back the $1.1 billion it owes over a shorter timeframe and to pay back any Bitcoin in actual Bitcoin. The discussion with Unchained followed shortly after New York Attorney General Letitia James filed a lawsuit against Genesis, along with its parent company Digital Currency Group, and Gemini Trust.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Show highlights:

what NYAG Letitia James alleged in the lawsuit against Gemini, DCG, and Genesis
how BJ and Branden became creditors of Genesis, including the role of the influence of MicroStrategy's Michael Saylor
how Genesis claimed it got into what it called a “liquidity mismatch”
how, after the Three Arrows Capital collapse, BJ and Branden were reassured that Genesis had "no issues" and "was back to business"
whether the trading and lending units of Genesis were all part of the same company and why that distinction is important
what the difference is between the ad hoc group and an unsecured creditors committee
what the creditors are proposing in order to get their assets back
why the creditors want to be paid in crypto, not in USD
whether the case will go to litigation and what Silbert can do to avoid it

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Guests:

Branden, Creditor of Genesis
BJ, Creditor of Genesis

Links

Previous coverage of Unchained on Genesis and DCG:

Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It?
Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy?
$630M Due Next Week: Is DCG at Default Risk?

NYAG Lawsuit

Unchained: NY Attorney General Sues Crypto Firms Gemini, Genesis, and DCG for Over $1 Billion Fraud
The Block: DCG says it was 'blind sided' by NYAG suit in third quarter shareholder letter

Genesis, Gemini, DCG disputes

Unchained:
Gemini Says DCG Missed $630 Million Payment Last Week
Cameron Winklevoss Threatens to Sue DCG and Barry Silbert Over Delays in Genesis Resolution
DCG Calls Gemini Lawsuit a ‘Publicity Stunt’ From Cameron Winklevoss
DCG Calls Gemini’s Complaint a PR Campaign in Motion to Dismiss Lawsuit
FTX and Genesis Reach $175 Million Settlement, Resolving Complex Dispute
DCG and Genesis Reach In-Principle Deal With Creditors
Gemini and Genesis Creditor Groups Object to In-Principle Deal to Resolve Bankruptcy
Genesis Winds Down its US Spot Crypto Trading Operation
Genesis Sues Parent Company DCG, Seeks Repayment of $600 Million
DCG Proposes Remuneration Plan That Could Enable Gemini Earn Users to Be Made Whole
Genesis Winds Down All Crypto Trading Services: Report
Gemini Pushes Back on DCG’s Remuneration Proposal, Calling it an ‘Attempt to Bait’ Earn Users