Dec. 3 (Reuters) - Cryptocurrency broker Genesis and its parent company Digital Currency Group (DCG) owe $900 million to twin crypto exchange clients Winklevoss Gemini, according to the Financial Times. said Saturday.
Citing people familiar with the matter, the newspaper reported that the Gemini cryptocurrency was trying to recover funds after Genesis failed last month after Sam Bankman Freed’s FTX crypto package crashed.
Last month, Digital Currency Group CEO Barry Silbert told shareholders that Digital Currency Group, a venture capital firm that owns Genesis Trading and crypto asset manager Grayscale, owes Genesis affiliate a $575 million cryptocurrency loan.
The report added that Gemini, which operates a crypto lending product in partnership with Genesis, has now set up a committee of creditors to recover funds from Genesis and parent company DCG.
Genesis and Gemini did not immediately respond to a Reuters request for comment.
Last month, the New York Times, citing three people familiar with the matter, reported that Genesis had approached investment bank Moelis & Company to explore options, including possible bankruptcy.
Last month, Genesis Global Capital suspended payments to customers in its lending business, citing the sudden crash of the FTX cryptocurrency exchange.
Cryptocurrency exchange FTX filed for bankruptcy protection in the United States on Nov. 11 in the biggest crypto explosion yet, after traders pulled billions off the platform in three days and rival exchange Binance canceled a bailout deal.
Additional report by Shubhendu Deshmukh and Rhea Benoy of Bangalore; Editing by Toby Chopra and Christina Fincher
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