By Michael Scott
The current liquidity squeeze witnessed across the crypto space influenced Genesis Global to file for bankruptcy protection on January 19. Stellar Foundation was confirmed to be on Genesis’s top 50 creditors list. The firm is said to have lent $13 million to the troubled risk management firm in the previous trading year.
Genesis Bankruptcy Filing
Genesis Global joins other crypto exchanges in filing for bankruptcy protection, citing the current crypto market condition. Earlier this week, the troubled crypto lender filed for bankruptcy protection to avert similar incidents that happened to Bahamas crypto exchange FTX last November.
The claim list submitted by Genesis at the Delaware Bankruptcy Court is now a topic of controversy. Stellar Development Foundation (SDF) leads the other 50 debtors on the list after lending the crypto lender $13 million last year.
The Stellar group confirms that the loan comprises a small portion of its total assets that fail to interfere with the firm operations. The team from Stellar stated that Genesis’s move would not halt Stellar ongoing projects that require fathomable capital.
An update on the Stellar Foundation Website shows that it has accumulated $30 million from XLM holdings that will be utilized in improving the Stellar Ecosystem.
Genesis Claim List Exposed
Following the collapse of FTX, Genesis suspended the redemption of assets indefinitely. This decision shook the crypto hemisphere to its core since the crypto broker was portrayed to follow FTX footprints. Among the devastated lenders whose assets got stuck in the Genesis platform was its parent Digital Currency Group (DCG), which the troubled firm owes $1.65 million.
The DCG Genesis creditors list affects other crypto lenders such as ByBit and Cumberland. As per the list, the Winklevoss brothers’ crypto exchange Gemini outstanding balance is $766 million. Still, the crypto broker owes the founders of Babel Finance $150 million besides the $53 million claim by VanEck’s financial providers. Heliva International is also on the list after loaning $55 million to the embattled crypto firm.
From the creditors, the list is reported that the amount Genesis owes the creditors is a consequential amount translating to a figure above $3.5 billion.
The claim list portrayed that the leading crypto lenders’ outstanding loan amounts to $230 million while the other creditors demand $462.2 million.