Kaplan Fox Investigates Genesis Global Capital
NEW YORK, Dec. 19, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating potential claims on behalf of customers of Genesis Global Capital, LLC, including users of Gemini Trust Company, LLC’s (“Gemini”) Earn program.
If you are a Gemini Earn user, or are otherwise a Genesis customer, and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com, by calling (212) 329-8571, or click here to contact.
On November 16, 2022, CoinDesk reported that the “lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday. The unit, known as Genesis Global Capital, serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022, according to the company’s website.”
On November 23, 2022, Reuters reported that “Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis’ crypto lending arm, Chief Executive Barry Silbert said in a letter to shareholders on Tuesday afternoon. Loans from Genesis Global Capital, which suspended customer withdrawals last week, were used to ‘fund investment opportunities’ and repurchase stock from non-employee shareholders, Silbert said in the letter, which was seen by Reuters. That debt is due in May 2023, he added.”
According to the Gemini Earn Update webpage, “Gemini — acting as agent on behalf of Earn users — has been in ongoing conversations with Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), the parent company of Genesis, and Barry Silbert (CEO of DCG) in an effort to find a resolution as soon as possible.”
On December 17, 2022, Gemini announced that “Houlihan Lokey, the Financial Advisor of the Creditor Committee, has begun advocating for a plan to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of funds” although it “is still early stages, and discussions are ongoing . . . .”
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Kaplan Fox & Kilsheimer LLP, with offices in New York, Oakland, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this investigation, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Ph: (212) 329-8571
E-mail: jcampisi@kaplanfox.com
Jason A. Uris
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Ph: (212) 687-1980
E-mail: juris@kaplanfox.com
