Creditors call out Genesis’ “very sloppy” bankruptcy filing: What went wrong?
- 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.”
Also important to note that Mirana Ventures and Mirana AM are entirely separate sub entities. Mirana Ventures is not a creditor and has no exposure to this. I have no connection to Mirana AM and much of the info including the amount is incorrect. Very sloppy filing. https://t.co/3jyDf7Aaic
— Jon Allen (@jonathantallen1) January 20, 2023
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.
Genesis’ bankruptcy filing today reflects misleading and incorrect information, and as part of our commitment to transparency, we are providing more details. pic.twitter.com/FbXlQRAsoE
— Cumberland (@CumberlandSays) January 20, 2023
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.