Genesis (cryptocurrency company)
| Company type | Subsidiary |
|---|---|
| Industry | Cryptocurrency, Digital assets |
| Founded | 2013 |
| Founder | Barry Silbert |
| Products | Over-the-counter trading, Institutional digital asset lending, Custody services |
| Parent | Digital Currency Group |
Genesis functions as a digital asset intermediary catering to institutional investors and operates under the umbrella of its parent organization, Digital Currency Group (DCG). Its operations encompass several entities, including Genesis Global Trading, Inc. ("GGT"), Genesis Global Capital, LLC ("GGC"), Genesis Asia Pacific Pte. Ltd. ("GAP"), GGC International Limited ("GGCI"), and Genesis Custody Limited ("Genesis Custody"). The firm provides over-the-counter (OTC) trading solutions designed for substantial digital asset transactions via Genesis Trading, while its lending arm delivers institutional-grade lending services involving digital currencies.
On January 19, 2023, Genesis initiated a Chapter 11 bankruptcy filing to restructure its lending and borrowing activities related to digital assets.
History
Established in 2013 by Barry Silbert, Genesis is a subsidiary under DCG, a venture capital entity. The company primarily serves institutional clientele and affluent individuals, asserting that it pioneered the first OTC Bitcoin trading desk.
In early 2020, the company broadened its custody capabilities by acquiring Volt, a London-based cryptocurrency custodian, transitioning its custody services from Coinbase to Grayscale Investments.
In July 2022, following financial setbacks connected to loans extended to Singapore’s Babel Finance and the insolvent hedge fund Three Arrows Capital (3AC), DCG took on portions of Genesis' debt. Subsequently, former CEO Michael Moro stepped down in August 2022, with COO Derar Islim appointed as Interim CEO.
By November 2022, Genesis disclosed $2.8 billion in loans outstanding and engaged Moelis & Company to explore restructuring strategies, including possible bankruptcy proceedings. At that time, the company was also subject to inquiries by state securities regulators.
On January 12, 2023, the Securities and Exchange Commission filed charges against Genesis Global Capital for unregistered securities offerings related to Gemini Trust Company's Gemini Earn lending program. The SEC sought injunctive relief and fines against both entities.
In January 2023, Genesis Global Holdco along with two lending subsidiaries submitted Chapter 11 bankruptcy petitions listing over 100,000 creditors and liabilities estimated between $1.2 billion and $11 billion. Notably, the derivatives and spot trading divisions were excluded from this filing and remain operational.
In February 2023, an agreement in principle was reached among DCG, Genesis, and major creditors whereby DCG agreed to transfer its equity stake in Genesis Global Trading to Genesis Global Holdco. Additionally, DCG planned to refinance its debts by converting a $1.1 billion promissory note into convertible preferred stock issued by itself. Gemini also pledged $100 million to support the bankruptcy recovery efforts.
Following a suspension of withdrawals impacting Gemini clients due to liquidity challenges, a group of affected customers established the Ad Hoc Group (AHG) opposing the restructuring proposal. The AHG criticized the plan for inadequate transparency, extensive liability protections granted to current and former executives and directors, and insufficient detail regarding ongoing litigation involving Gemini.