Genesis Trading And Grayscale are Heading For Bankruptcy As FTX Contagion Spreads
Photo: Twitter
Genesis Trading And Grayscale are insolvent according to reports
BREAKING:
— Satoshi Stacker (@StackerSatoshi) November 16, 2022
There are rumours about Genesis Trading being insolvent despite receiving an infusion of $140 million a few days ago.
The parent company of Genesis is DCG, which is also the parent company of Grayscale.
Grayscale is one of the largest holders of bitcoin, worth $11B
After FTX it looks like Genesis Trading, a Crypto brokerage firm is being hit with insolvency issues.
BREAKING: Genesis Trading having solvency issues. The parent company is DCG, which is also the parent company of Grayscale who holds $11b worth of #Bitcoin.
— Mr. Whale š³ whalechart.org (@WhaleChart) November 16, 2022
A call has been scheduled with creditors where Genesis is expected to reveal its connection with Alameda Research and FTX. It is also speculated that the firm will dissolve GBTC and ETHE trust to pay their creditors.
HOLY SHIT. Last night I asked genesis for comment believing they were insolvent (below), right before publication they announced they HALTED WITHDRAWALS. THEY KNEW MY STORY WAS COMING OUT. pic.twitter.com/470EU9tloX
— Coffeezilla (@coffeebreak_YT) November 16, 2022
Meanwhile, Autism Capital, a proof-of-stake infrastructure provider has claimed that it’s the Grayscale who controls GBTC and ETHE trusts not Genesis. Genesis Trading has reported that currently it has $175 million in locked funds in its FTX account. Hence, Digital Currency Group (DCG) which controls Genesis and Grayscale has given $140 million in equity to Genesis.
we could have a house of cards on steroids where we end up discovering way more entities are insolvent than we ever couldāve imagined and weāre sent back into the stone age
— gainzy (@gainzy222) November 11, 2022
blockfi is prob insolvent
jump definitely ate an L
havenāt heard from genesis
lenders absolutely rinsed https://t.co/Tk8XQVPeHn