• Genesis interim CEO Derar Islim pleaded for more time to sort the financial situation of its lending arm.
• In November 2022, Genesis halted withdrawals due to FTX’s collapse, affecting $900 million in client funds.
• Gemini co-founder Cameron Winklevoss gave DCG’s CEO Barry Silbert a Jan. 8 deadline to resolve the issues.
Genesis, a lending arm of parent company Digital Currency Group (DCG), is currently in the midst of a complex process to sort out its financial situation. The firm’s interim CEO, Derar Islim, has pleaded for more time to ensure the best outcome for all affected clients.
The difficulties began in November 2022 when the firm halted withdrawals due to the collapse of FTX, affecting $900 million in client funds. This move has caused a stir among those affected, with some filing a class action lawsuit and Gemini co-founder Cameron Winklevoss giving DCG’s CEO Barry Silbert a Jan. 8 deadline to resolve the issues.
Since then, Genesis has been working with its advisors, as well as DCG and advisors appointed by various client groups, to evaluate options to preserve client assets and move the business forward. Islim has stressed the firm’s commitment to finding a solution, saying that it will take some additional time.
The financial well-being of the firm has come under scrutiny, with speculation that bankruptcy might be the only way to survive the situation. However, Genesis is adamant that it will find a way out of this difficult period. Islim’s plea for more time gives the firm a chance to do just that, and the firm remains focused on reaching the best outcome for all clients.