© Reuters
Investing.com — Cryptocurrency prices posted modest gains on Monday, but doubts over the fate of the Genesis exchange continued to weigh on sentiment, after reports over the weekend indicated the extent of his problems.
As of 10:45 ET (15:45 GMT), the was holding just above $17,000, after hitting a three-week high at $17,420 overnight. The move was aided by a broad advance in risk assets on news that suggests China will move away from its Zero-COVID policy that has dogged its economy throughout the year.
The Financial Times reported over the weekend that Genesis owed some $900 million to customers of digital asset platform Gemini, though that figure seems less alarming if you put aside the roughly $1.1 billion. from its parent company, Barry Silbert’s Digital Currency Group. According to the FT, discussions are ongoing between Genesis and DCG on how to resolve the issue of intra-company loans.
According to the FT, DCG has total debts of $2 billion, of which $1.7 billion is owed to Genesis. In addition to the $1.1 billion in debt DCG took on to cover Genesis’ exposure to bankrupt hedge fund 3 Arrows Capital, DCG also borrowed $575 million “on a stand-alone basis” to fund, among other things. , DCG share buybacks.
Genesis, which suspended customer withdrawals in mid-November after being taken aback by the collapse of FTX, was the main partner in the “Earn” program run by Gemini, the pioneer empire’s main asset. Cameron and Tyler Winklevoss cryptocurrency. Earn has similarly put his repayments on hold, while negotiations over restructuring Genesis’ debts continue.
By Geoffrey Smith