© Reuters
Investing.com — Cryptocurrency prices posted modest gains on Monday, but doubts over the fate of the Genesis exchange continued to weigh on sentiment, after weekend reports showed the extent of on his problems.
As of 10:45 ET (15:45 GMT), it was holding above $17,000, after hitting a three-week high of $17,420 overnight. The move was helped by a broad improvement in risk assets on news suggesting that China will move away from its Zero-COVID policy that has kept its economy on hold throughout the year.
The Financial Times reported over the weekend that Genesis owes about $900 million to customers of digital asset platform Gemini, though that number seems less alarming when you discount the nearly $1.1 billion from its parent company. , Barry Silbert’s Digital Currency Group. According to the FT, discussions are ongoing between Genesis and DCG on how to resolve the intra-company loan issue.
According to the FT, DCG has a total debt of $2 billion, of which $1.7 billion is owed to Genesis. In addition to the $1.1 billion in debt DCG took out to cover Genesis’ exposure to bankrupt hedge fund 3 Arrows Capital, DCG also borrowed $575 million “on a stand-alone basis” to finance, among other things thing. , DCG share buybacks.
Genesis, which suspended customer withdrawals in mid-November after being surprised by the collapse of FTX, is the main partner of the “Earn” program run by Gemini, the pioneer empire’s main asset. Cameron and Tyler Winklevoss cryptocurrency. Earn has also withheld his payments, while negotiations continue to restructure Genesis’ debts.
By Geoffrey Smith