The year 2022 has been one of the most challenging years for the global markets, especially cryptocurrencies. The crypto world had several unfavorable events like bankruptcy where major companies such as FTX, Three Arrows Capital, Genesis, and Voyager saw their downfall after Terra (LUNA) collapsed in May 2022. It’s just not that, Bitcoin which was selling at around $48,000 in early 2022 has now plummeted towards the $16,000 area.
The bankruptcy series of these high-profile companies started with Three Arrows Capital and Genesis Trading, a cryptocurrency market operator and financing company. As per the sources, Genesis’s losses are connected to over-leveraged fund manager Three Arrows Capital and Hong Kong crypto financier Babel Finance.
Genesis Owe $900M To Gemini Users
Now, the latest updates emerge with Gemini co-founder Cameron Winklevoss’s open letter to Genesis’ owner. The letter claims that Genesis and its parent company Digital Currency Group (DCG) owe $900 million to Gemini customers.
As per the reports, after FTX went bankrupt, Genesis ceased all its withdrawals which left nearly 340,000 Gemini users confused. The letter also mentions a deadline of January 8th, 2023 to solve the issue.
DCG To Blame For Terra Collapse
It looks like DCG has attracted some major trouble as even Three Arrows Capital founder Zhu Su has accused DCG along with FTX for the fall of Terra (LUNA) and STETH. According to Zhu Su DCG, instead of restructuring ignored the issue. 3AC founder believes that DCG and FTX misled the crypto community even when they knew Genesis was collapsing.
Zhu Su has formed a strong opinion that Genesis is most likely to face bankruptcy in the coming days. He states that instead of approaching the Department of Justice, creditors are still hoping for help from Barry Silbert, Chief Executive at DCG.