Genesis Files for Chapter 11

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 21 January 2023

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

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Summary

After weeks, if not months, of speculation, Genesis has finally filed for Chapter 11 bankruptcy protection, citing more than $5.1 billion in liabilities. On today’s episode, NLW looks at the implications of the filing plus the battles to come. He also covers the FTX hearing on the suitability of representation by Sullivan & Cromwell. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26–28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Swoon” by Falls. Image credit: ZargonDesign/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.1	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.3	The breakdown is produced and distributed by CoinDesk.
0:20.5	What's going on, guys? It is Friday, January 20th, and today we are closing one chapter,
0:26.4	a chapter 11, if you will, of one of the big sagas in crypto.
0:30.9	A quick note before we dive into that, there are two ways to listen to the breakdown.
0:34.5	You can hear us on the CoinDesk Podcast Network, which comes out every
0:37.6	afternoon and features other great shows alongside the breakdown, or you can listen on the
0:41.3	breakdown-only feed, which comes out a few hours later in the evening. Wherever you listen,
0:45.3	if you would take the time to leave a rating or a review, it would make a huge difference,
0:48.7	and I so appreciate it. All right, now to today, we have been covering this saga of Genesis and DCG for the last several months,
0:56.5	right up to yesterday when we discussed how the community was thinking about a possible Genesis bankruptcy.
1:02.1	Well, late last night, the waiting was over.
1:05.1	Genesis Global Capital has filed for Chapter 11 bankruptcy protection in the Southern District of New York.
1:10.5	The filing includes holding company Genesis Global Holdco and sister company Genesis Asia
1:14.7	Pacific and is part of the filing Genesis lodged an application for joint administration.
1:19.5	The bankruptcy does not include the prime brokerage, custody, or exchange arms of Genesis.
1:24.3	The initial filing estimates assets and liabilities of Genesis global capital in the
1:28.3	$1 billion to $10 billion range with more than 100,000 creditors. The top 50 creditors list
1:34.0	alone shows a total of $3.6 billion in claims, including $766 million owned to Gemini
1:40.2	Trust Company, the largest creditor, 18.7 million owned a trading firm Cumberland,
1:45.2	151.5 million owed to Crypto Fund Marana, which is invested in Bybit, 150 million owed to
	...

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