CoinDesk Podcast Network cover image

CoinDesk Podcast Network

UNCHAINED: Two Genesis Creditors Describe Their Frustrations With the Bankrupt Crypto Lender

Nov 6, 2023
Genesis creditors BJ and Branden discuss alleged fraud by crypto lender Genesis and its parent company DCG. They reveal how they gave more loans after the 3AC hit and now want DCG to pay back $1.1 billion in Bitcoin. They talk about the lawsuit against Genesis, DCG, and Gemini. The podcast covers experiences, frustrations, deceptive phone calls, communication breakdown, bankruptcy filing, controversial promissory note, unsecured creditors committee, and proposed restructuring plan.
01:28:03

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Genesis customers formed an ad hoc group to assist with a liquidity mismatch in the company, proposing $900 million in liquidity to cover withdrawal requests.
  • Genesis accepted GBTC as collateral, exposing it to market volatility and putting the company at risk.

Deep dives

Genesis customers formed ad hoc group to assist with liquidity mismatch

A group of Genesis customers formed an ad hoc group to assist with a liquidity mismatch in the company. They offered to provide $900 million in liquidity to Genesis to help cover the withdrawal requests from Gemini. However, it was discovered that there was a $1.1 billion hole in Genesis' balance sheet that had not been filled by its parent company, DCG. Genesis filed for bankruptcy in January 2023 after refusing to pay back loans and accept the $1.1 billion promissory note from DCG. The group has been fighting to have a say in the bankruptcy proceedings and propose their own plan to resolve the situation.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner