Genesis Trading finally filed for Chapter 11 Bankruptcy yesterday evening. It is reported that Genesis has $5.1B of liabilities. The Genesis companies' bankruptcy filings included a plan but not a “disclosure statement,” which will tell us what's in the plan. So we don’t actually know what the plan is. But chances are the creditors will have to make concessions in order to get some of their money back. Gemini CEO Cameron Winklevoss tweeted the following thread after the filing came out, chastising DCG and its CEO Barry Silbert.
In the meanwhile, the crypto prices are pumping. BTC is now $22.6K and ETH is at $1,650. Both are up around 7% in 24 hours. Is all the bad news priced in and crypto just bottomed? I don’t know. But I am looking forward to knowing more details about the Genesis mess through their bankruptcy proceedings. One thing I learned from working in startups is that many organizations who have the outward image of being a well-oiled organization machine are in reality quite disorganized and incompetent. We have seen a glimpse of that from FTX/Alameda. We are about to see how the blue-chip crypto lending company Genesis was being run and it’s going to be epic.