The crypto exchange owned by the Winklevoss twins is attempting to recoup $900 million from a cash-strapped crypto broker that has been gutted within the wake of the FTX collapse, in accordance with a report.
Latest York-based Gemini — which Tyler and Cameron Winklevoss began after settling their famous beef with ex-Harvard classmate Mark Zuckerberg over who founded Facebook — ran a partnership for purchasers in its “earn” program wherein Gemini lent its coins to the crypto broker Genesis in return for a hard and fast stream of returns.
But Genesis said it couldn’t afford to make good on all of its returns last month after it faced “unprecedented market turmoil” consequently of the FTX collapse, in accordance with the Financial Times.
The Winklevosses have created a committee of creditors to attempt to reclaim their $900 million investment from Genesis and its parent company, Digital Currency Group (DCG).
Meanwhile, Genesis is trying to lift emergency funds to repay its debts, and has hired the investment bank Moelis & Co to assist work out how, the FT reported.
The Winklevoss twins founded Gemini in 2014Bloomberg via Getty Images
Genesis has about $2.8 billion in energetic loans, in accordance with its website. Its parent company DCG is in $2 billion price of debt, $1.7 billion of which is owed to its own subsidiary, Genesis.
DCG was founded in 2015 and is considered one of the most important investors within the crypto industry, reaching a $10 billion valuation last yr.
The Winklevoss twins founded Gemini a yr earlier, in 2014, and have become the primary US-based licensed Ethereum exchange.