Crypto Lender Genesis
Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more



This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.







Crypto Lender Genesis Files for Chapter 11 Bankruptcy with $150 Million Cash & $5.1 Billion in Liabilities, Parent Digital Currency Group Investors Include Softbank, Capital G (Alphabet), Ribbit Capital & Singapore GIC

21st January 2023 | Hong Kong

Crypto lender Genesis, with the parent entity Digital Currency Group (DCG) valued at $10 billion in 2022, has filed for United States Chapter 11 bankruptcy (19/1/23) with $150 million in cash, $5.1 billion in liabilities of which $3.4 billion is owing to the top 50 creditors.  3 of Genesis entities had filed for the Chapter 11 bankruptcy – Genesis HoldCo, Genesis Global Capital LLC and Genesis Asia Pacific Pte Ltd.  In November 2022, Crypto lender Genesis had suffered from liquidity problems and stopped withdrawals from clients.  In 2022, Genesis reported a $1.2 billion loss to collapsed crypto hedge fund Three Arrows Capital (3AC).  Genesis is a subsidiary of the Digital Currency Group (DCG), a crypto conglomerate founded by Barry Silbert in 2015.  Digital Currency Group (DCG) also owns Grayscale Investments (Crypto fund), Foundry Digital (crypto-mining service provider), Coindesk (news publication), Luno (Crypto exchange), Silvergate (Crypto bank).  Investors in Digital Currency Group (DCG) includes Softbank, Capital G (Alphabet), Ribbit Capital and Singapore GIC.  Barry Silbert was a former investment banker and founder of secondary trading platform for employees with restricted stock in public companies (Restricted Stock Partners).  In 2008, Restricted Stock Partners was rebranded to SecondMarket, expanding trading services to include private company stock and alternative investments (A facebook employee had asked if they could sell his facebook shares).     See below for Genesis Chapter 11 Bankruptcy Filing

” Crypto Lender Genesis Files for Chapter 11 Bankruptcy with $150 Million Cash & $5.1 Billion in Liabilities, Parent Digital Currency Group Investors Include Softbank, Capital G (Alphabet), Ribbit Capital & Singapore GIC “

 

- Article continues below -
Web links may be disabled on mobile for security.
Please click on desktop.





The 2023 Investment Day | HK & SG
Where do you invest $250k, $1 million, $10 million, $100 million or $1 billion? Can you generate IRR of 10% / 15% / 20% or more? Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 28th March 2023 in Hong Kong, 4th April 2023 in Singapore, and Virtual Investment Day in April 2023.
Visit | Register here





 

Genesis – Genesis has taken strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future. On January 19, Genesis Global Holdco, LLC and two of its lending business subsidiaries, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntarily petitions under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York. Genesis’s other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.  We have engaged a claims agent, Kroll, to help answer questions from customers, employees, partners and other stakeholders. They have set up a website which includes court documents and other information about the process.

Genesis is a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors. Genesis combines unrivaled operational excellence, a seamless user experience, and best-in-class client service to provide the full suite of services global investors require to manage their digital asset portfolios.  The firm offers sophisticated market participants a fully integrated platform to trade, borrow, lend, and custody digital assets, creating new opportunities for yield while increasing capital efficiency for counterparties.  For more information on Genesis, please visit genesistrading.com.

 

Genesis Chapter 11 Bankruptcy Filing

Crypto Lender Genesis

Genesis Initiates Process to Achieve Global Resolution to Maximize Value for All Clients and Stakeholders and Strengthen Its Business for the Future

  • Commences voluntary Chapter 11 restructuring of lending business to further advance ongoing stakeholder discussions and optimize outcome for Genesis clients and Gemini Earn users
  • Outlines Chapter 11 plan contemplating potential sale and/or equitization transaction to enable lending business to emerge under new ownership
  • Restructuring process led by independent special committee of the board of directors
  • Genesis’s derivatives and spot trading, broker dealer and custody businesses are not part of Chapter 11 and continue client trading operations
  • Ample liquidity of more than $150 million to support operations and facilitate restructuring process

19th Jan 2023 – Genesis Global Holdco, LLC (“Genesis” “GGH” or the “company”), an industry pioneer and digital currency prime brokerage, today announced strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.

As previously announced, Genesis and its advisors have been engaged in ongoing, productive discussions with advisors to its creditors and corporate parent Digital Currency Group (“DCG”) to evaluate the most effective path to preserve assets and move the business forward. Genesis has now commenced a court-supervised restructuring process to further advance these discussions and reach a holistic solution for its lending business, which, if achieved, would provide an optimal outcome for Genesis clients and Gemini Earn users.

Genesis Global Holdco, LLC (“GGH”) and two of its lending business subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. Ltd. (“GAP”), filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “court”). Genesis’s other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

As part of its Chapter 11 filing, Genesis has proposed a roadmap to an exit including a Chapter 11 plan (the “plan”) that calls for a framework for a global resolution of all claims through, and the creation of, a trust that will distribute assets to creditors. The plan contemplates a dual track process in pursuit of a sale, capital raise and/or equitization transaction that would enable the business to emerge under new ownership. The company will initiate a marketing and sale process to monetize GGH’s assets or otherwise raise capital, using the transaction proceeds to pay creditors fairly and equitably. If the marketing process does not result in a sale or capital raise, creditors will receive ownership interests in Reorganized GGH.

All aspects of the restructuring process will be overseen by an independent special committee of the company’s board of directors.

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” said Derar Islim, Interim CEO, Genesis. “We deeply appreciate our clients’ ongoing patience and partnership as we work towards an equitable solution.”

Derar Islim was appointed to his position in August 2022 as part of a series of leadership announcements to further strengthen the company’s governance and position it for the future.

“We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders,” said Paul Aronzon, an independent director at Genesis. “We look forward to advancing our dialogue with DCG and our creditors’ advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future.”

Genesis has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. The company has filed a number of customary “first day” motions with the court to enable day-to-day operations to continue in the normal course. Court approval for these requests is expected in the coming days. Redemptions and new loan originations in the lending business remain suspended, and claims will be addressed through the Chapter 11 process. Genesis and its advisors will continue to evaluate options to advance the process to reach a global resolution.

Additional information on the Chapter 11 filing, including access to court documents, is available at https://restructuring.ra.kroll.com/genesis.

Moelis & Company is acting as financial advisor to the company. Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel. Alvarez & Marsal is serving as restructuring advisor.

About Genesis

Genesis is a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors. Genesis combines unrivaled operational excellence, a seamless user experience, and best-in-class client service to provide the full suite of services global investors require to manage their digital asset portfolios.  The firm offers sophisticated market participants a fully integrated platform to trade, borrow, lend, and custody digital assets, creating new opportunities for yield while increasing capital efficiency for counterparties.  For more information on Genesis, please visit genesistrading.com.




Quick Links


2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM


For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

Register Below








Caproasia Users

  • Manage $20 million to $3 billion of assets
  • Invest $3 million to $300 million
  • Advise institutions, billionaires, UHNWs & HNWs

Caproasia Platforms | 10,000 Investors & Advisors

Monthly Roundtable & Networking

Family Office Programs

The 2023 Investment Day

  • 28th March 2023 - Hong Kong
  • 4th April 2023 - Singapore
  • April 2023 - Virtual
  • Sept 2023 - Hong Kong
  • Oct 2023 - Singapore
  • Oct 2023 - Hong Kong
  • Visit: The Investment Day | Register: Click here

Caproasia Summits

Contact Us

For Enquiries, Membership
mail@caproasia.com, angel@caproasia.com

For Listing, Subscription
mail@caproasia.com, claire@caproasia.com

For Press Release, send to:
press@caproasia.com

For Events & Webinars
events@caproasia.com

For Media Kit, Advertising, Sponsorships, Partnerships
angel@caproasia.com

For Research, Data, Surveys, Reports
research@caproasia.com

For General Enquiries
mail@caproasia.com





Make Better Business & Investment Decisions



For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Sign Up / Register


    Professional InvestorInstitutional InvestorFamily OfficeAdvisorFinancial ProfessionalExecutiveOthers


    Mailing ListFree TrialSubscription YearlySubscription MonthlyMembershipEvents


    Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights











    Caproasia | Driving the future of Asia
    a financial information technology co.
    since 2014


    Web links may be disabled on mobile for security.
    Please click on desktop.






    Previous articleJamaica Olympic Gold Medallist Usain Bolt Lost $12.7 Million in Missing Funds in Employee Fraud at 45 Year-Old Jamaica Investment Firm, Account Balance of $12,000 Left in Earmarked Retirement for Parents & Himself
    Next articleIndia $61 Million Sanghvi & Sons Diamond Heiress 8-Year Old Devanshi Sanghvi Gives Up Fortune, Becomes a Nun to Forgo Worldly Pleasures
    Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia