Sunday, April 2, 2023
Bitcoin - Altcoin News
No Result
View All Result
  • Login
No Result
View All Result
Bitcoin News
No Result
View All Result
Home News Alameda Research

Alameda-Genesis Relationship Risks DCG Bankruptcy, Claims Messari Founder

news by news
December 12, 2022
in Alameda Research, DCG, ftx, Genesis, News
0
Alameda-Genesis Relationship Risks DCG Bankruptcy, Claims Messari Founder
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit

Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why

Alameda-Genesis Relationship Risks DCG Bankruptcy, Claims Messari Founder

Crypto research firm Messari’s founder Ryan Selkis on Monday said Genesis and Alameda had bad loans and intertwined crypto borrower-lender relationships. FTX and Alameda bankruptcy could risk Genesis liquidation and may cause its parent Digital Currency Group (DCG) to go bankrupt.

Genesis and DCG Legal Dispute With Alameda

Sam Bankman-Fried’s FTX and Alameda commingled financial accounts and management caused the collapse of many crypto firms. Now, Genesis’ relation with Alameda is in question as reports suggest the two firms were the biggest crypto borrower-lender counterparties.

Messari founder Ryan Selkis in a series of tweets on December 12 revealed Genesis unwound over $10 billion of its loan book in Q2 and Q3 2022. With Alameda-Genesis being crypto borrower-lender counterparties, it’s more likely they had loans. Genesis was “responsibly winding down a lot of their positions and yanking borrow.”

However, it doesn’t seem like Alameda or FTX are the creditors of Genesis currently. It shows either Alameda and Genesis had no relationship or closed their positions early.

Genesis calling capital from Alameda is a good risk management by the firm. However, dates of loan drawdowns will be crucial for Genesis and DCG to prevent bankruptcy.

Ryan Selkis asserts there is a 90-day clawback rule in bankruptcy cases. With FTX filing for Chapter 11 bankruptcy on November 11, the clawback date for Genesis is August 13.

He questions whether Genesis yank borrow from Alameda, how much was borrowed after August 13, and would that subject to clawback?

“If there’s a big number that changed hands after 8-13, I’m not sure how someone new to DCG underwrites that risk,” warned Messari founder Ryan Selkis.

With FTX bankruptcy process being long and complex, it would take a long-time to resolve the disputes and paying back creditors. Therefore, Genesis liquidation and DCG bankruptcy will depend on GBTC, if DCG’s $1.1 billion promissory note to Genesis is “callable”, and Genesis call capital from Alameda within the 90-day bankruptcy window.

Ryan Selkis believes there would be a huge legal battle between Genesis and Alameda.

The post Alameda-Genesis Relationship Risks DCG Bankruptcy, Claims Messari Founder appeared first on CoinGape.

Related Posts

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit
24/7 Cryptocurrency News

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit

April 1, 2023
Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why
24/7 Cryptocurrency News

Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why

April 1, 2023
Celsius Releases Reorganization Strategy; Finally Some Hope For Retail Customers?
24/7 Cryptocurrency News

Celsius Releases Reorganization Strategy; Finally Some Hope For Retail Customers?

April 1, 2023
Bitcoin Trades Above $28K Despite Fall Of Bittrex U.S.
24/7 Cryptocurrency News

Bitcoin Trades Above $28K Despite Fall Of Bittrex U.S.

April 1, 2023
Breaking: Binance Burns 1.6 Billion Terra Luna Classic Tokens, LUNC Price Jumps 3%
24/7 Cryptocurrency News

Breaking: Binance Burns 1.6 Billion Terra Luna Classic Tokens, LUNC Price Jumps 3%

April 1, 2023
XRP Lawyer States Best And Worst Outcomes In US SEC Vs Ripple Lawsuit
24/7 Cryptocurrency News

XRP Lawyer States Best And Worst Outcomes In US SEC Vs Ripple Lawsuit

April 1, 2023
Next Post
Crypto News Live Updates Dec 12: Justin Sun TRON’s Stablecoin USDD Depegs Heavily

Crypto News Live Updates Dec 12: Justin Sun TRON’s Stablecoin USDD Depegs Heavily

POPULAR NEWS

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

December 7, 2022
Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

December 7, 2022
Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

December 17, 2022
Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

December 7, 2022
Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

February 28, 2023

EDITOR'S PICK

Crypto News: Testnet Coin Deemed Worthless Soars By 165% Before Crashing

Crypto News: Testnet Coin Deemed Worthless Soars By 165% Before Crashing

February 26, 2023
Breaking: Circle Confirms CSO Twitter Account Hack, Promoted “One-Time Bonus” USDC Airdrop

Breaking: Circle Confirms CSO Twitter Account Hack, Promoted “One-Time Bonus” USDC Airdrop

March 22, 2023
Crypto News Live Updates Jan 4: Crypto Market Recovers; Solana Jumps By 16%

Crypto News Live Updates Jan 4: Crypto Market Recovers; Solana Jumps By 16%

January 4, 2023
Will MakerDAO’s New Plan Save DAI From Becoming Another UST?

Will MakerDAO’s New Plan Save DAI From Becoming Another UST?

March 11, 2023
Bitcoin - Altcoin News

© 2022 coingger.com

Navigate Site

  • Europe
  • Exchange
  • Elon Musk
  • ETH Price
  • crypto Tax U.S.
  • CZ
  • Crypto Miners
  • BTC Price
  • ChatGPT
  • China crypto
  • Coingecko
  • Binance Smart Chain
  • Bitcoin $100K
  • Airdrop

Follow Us

No Result
View All Result
  • Homepages
    • Home Page 1

© 2022 coingger.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In