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 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:
NYAG Lawsuit
Genesis, Gemini, DCG disputes
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