Genesis Capital asks for more time to resolve complicated financial situation

In a statement on January 4, Genesis interim CEO Derar Islim asked for more time to address the financial issues facing the company’s lending arm.

Islim said that the company is currently involved in “a very complex process that will take some additional time” and that Genesis remains committed to finding a solution and reaching the best outcome for all affected clients.

The company is working with advisors, including those appointed by various client groups, to evaluate options to preserve client assets and move the business forward.

Genesis halted withdrawals in November 2022 after the collapse of FTX, which affected clients of its lending platform, Gemini Earn, with a total of $900 million.

The company and its parent company, Digital Currency Group, have faced increased scrutiny over their financial health, and rumors have circulated that the company may have to file for bankruptcy.

Three Gemini Earn users have also filed a class action lawsuit against the company.

Meanwhile, Cameron Winklevoss, co-founder of Gemini, has given DCG CEO Barry Silbert a deadline of January 8 to resolve the issues and accused him of using “stall tactics.”