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Gemini, Hedge Funds, and a DeFi App: Bankrupt Genesis Reveals List of Creditors

Genesis owes $3.6 billion to 50 different creditors including investment firms, hedge funds, and at least one consumer-facing DeFi app.

3 min read
Creditors are entities that are owed money from a bankrupt firm. Image: Shutterstock.

Defunct crypto broker Genesis has revealed the largest creditors in its recent Chapter 11 bankruptcy filing, with crypto exchange Gemini taking the top spot, with a disputed debt of roughly $765.9 million.

The filing, made in the Southern District of New York revealed over $3.6 billion of debt to its largest creditors. Roughly half of the debtors were not named.

The second-largest named creditor is a Singapore-based entity called Mirana Corp, which has an outstanding debt of around $151.5 million.

Mirana Corp’s Seychelles-registered subsidiary Mirana Ventures has been actively investing in the industry, backing crypto gaming firm Animoca Brands, Ethereum scaling project Matter Labs, and a host of others.

The venture firm was also caught in the collapse of Three Arrows Capital (3AC), suing the now-bankrupt firm in December over an alleged $13 million debt.

The third-largest named creditor is Moonalpha Financial Services Limited, which trades under the name Babel Finance, and is based in Hong Kong.

The firm, which is owed just over $150 million, provides a litany of services such as crypto wealth management and crypto lending, marketed at high-net-worth individuals.

The fourth position is filled by hedge fund Coincident Capital, with Genesis owing the Cayman Islands-based firm around $112 million.

Donut, a mobile DeFi app that offered investors up to 6% on their savings, was revealed as the fifth largest named creditor with a debt of roughly $78 million.

Due to this Genesis exposure, Donut’s lending operations met a similar fate to Gemini Earn, shuttering withdrawals in November 2022.

What’s next for Genesis?

As well as being the firm's largest creditor, Gemini has been engaged in an ongoing public spat with Gemini's parent firm DCG.

Gemini terminated its Earn program on January 11, which offered users up to 8% on their idle cryptocurrencies, after first announcing delays to user withdrawals in November 2022. 

Gemini attributed the issues affecting its Earn program to its exposure to Genesis, who was the primary lending partner for the program. Genesis first announced suspending withdrawals in November 2022, too.

Gemini co-founder Cameron Winklevoss recently called on Barry Silbert, the CEO of Genesis parent firm Digital Currency Group, to step down—firing off several highly serious accusations, including accountancy fraud and intentionally misrepresenting its financial health. 

Earlier today, Winklevoss said that Gemini would be taking legal action against DCG and Silbert “imminently” if a repayment plan isn’t offered.

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