Genesis’ Deep Dive to Crypto Contagion Lands DCG $350M Loan to Todd Boehly

• New York-based crypto lender Genesis is in the midst of figuring out ways to avoid filing for bankruptcy.
• If Genesis were to fold, it would deliver another gut punch to an industry already reeling from FTX collapse.

A creditor committee that includes the crypto exchange Gemini has presented a plan to save the venture capital company Digital Currency Group (DCG) and its subsidiary, the cryptocurrency brokerage Genesis.

The plan, which was presented by Gemini president and co-founder Cameron Winklevoss and Houlihan Lokey, a New York-based firm that specializes in creditor advisory, would see Gemini provide $900 million in financing to Genesis. This would allow Genesis to repay its debts to other creditors, including Three Arrows Capital and Todd Boehly.

The collapse of FTX in July caused a chain reaction that has threatened to topple the most prestigious and respected crypto firms. Genesis was first in trouble when 3AC collapsed in July, taking with it $1.2 billion of Genesis’s money. Then, when FTX went down, Genesis lost an additional $175 million.

The collapse of these two major players in the crypto industry has caused a liquidity crisis in the market. Genesis has been unable to fund a surge in the number of customers asking to redeem their crypto, and it has halted withdrawals. DCG is also facing financial difficulties, and it has been unable to raise capital to save Genesis.

The plan presented by Gemini would provide much-needed liquidity to Genesis and DCG. It would also help to restore confidence in the crypto market. However, it is not clear whether the plan will be successful. Some creditors may not be willing to accept it, and Genesis may still be forced to file for bankruptcy.

The collapse of Genesis and DCG would be a major setback for the crypto industry. These two companies are major players in the market, and their failure would send shockwaves through the industry. It would also make it more difficult for other crypto firms to raise capital, and it could lead to a further decline in the price of cryptocurrencies.

The future of the crypto industry is uncertain, but the collapse of Genesis and DCG would be a major blow. The plan presented by Gemini is a step in the right direction, but it is not clear whether it will be enough to save these two companies.