Connect with us


Creditors call out Genesis’ “very sloppy” bankruptcy filing: What went wrong?



Creditors call out Genesis' "very sloppy" bankruptcy filing: What went wrong?
Source: Unsplash

  • Genesis’ creditors have taken issue with the way in which the bankruptcy filing was made.
  • Mirana and Cumberland have accused the crypto lender of providing misleading and incorrect information.

Genesis Global became the latest crypto firm to succumb to the ongoing crypto winter that has left several firms bankrupt in its wake. The industry had been anticipating the crypto lender’s bankruptcy. However, two particular firms have taken issue with the manner in which Genesis handled its bankruptcy filing. 

“Misleading and incorrect info” by Genesis

Mirana, the investment arm of crypto exchange ByBit, and crypto trading firm Cumberland, have both accused Genesis of handling its bankruptcy filing in a sloppy manner. The crypto lender filed for chapter 11 bankruptcy on 20 January with a whopping $5.1 billion in liabilities. 

Soon after the bankruptcy filing, excerpts from the chapter 11 document started going around on Twitter, outlining how much the lender owed to its creditors. Gemini, Decentraland [MANA], and the Stellar Foundation were among the most recognizable names in the list, who had a combined exposure of $833 million. 

Also on this list was Mirana, with $151 million listed as an unsecured claim to its name. The list also revealed that Cumberland was owed $18 million.

Jonathan Allen, Managing Partner at Mirana Ventures, took issue with the filing, since it only mentioned “Mirana Corp” instead of Mirana Asset Management, the actual creditor. He tweeted:

“I have no connection to Mirana AM and much of the info including the amount is incorrect. Very sloppy filing.”

This was followed by a tweet from Cumberland’s official Twitter account, which called out Genesis for putting out “misleading and incorrect information”. According to the crypto trading firm, they had closed their fully collateralized loan to Genesis on 16 November 2022. This left a total exposure of $46,064, instead of the $18 million claimed in the bankruptcy filing. 

Soon after the bankruptcy filing, the president of Genesis’ largest creditor threatened its parent firm Digital Currency Group and its CEO Barry Silbert.

Cameron Winklevoss, who has been involved in a public feud with Silbert over the crypto lender’s non-repayment, indicated that he was ready to take legal action against DCG and the chief unless they provided a reasonable solution.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.