The crypto broker Genesis owes the customers of Winklevoss Exchange $ 900 million

The Digital Asset Trade Group Genesis and your parent company Digital Currency Group owe customers of the crypto exchange of the Winklevoss-Zwillings $ 900 million, while the collapse of FTX on the entire market.

The New York crypto exchange Gemini, which is operated by Tyler and Cameron Winklevoss, tries to regain the funds after Genesis was caught on the wrong foot last month due to the collapse of Sam Bankman-Frieds FTX crypta corporation.

The offer of Gemini to get the funds back underlines, such as the crypto-lending market, on which investors lend their coins against high returns, at the center of the credit crisis in the industry.

Genesis is the main partner of Gemini's “Earn” program, in which private investors give their coins against a fixed flow of yield. Gemini stopped payments from the program last month after Genesis said that "unprecedented market turbulence" meant that it did not have enough liquidity to meet all of his requests for withdrawal.

Gemini has now formed a creditor committee to get the funds from Genesis and his parent company DCG back in, people said. Gemini and Genesis rejected an opinion.

Genesis has tried to obtain funds and has committed investment banking boutique Moelis & Co to help exploring all possible options, according to the situation.

The creditor committee negotiates with genesis and DCG, the parent company of Genesis, which is run by the billionaire Barry Silbert. DCG was founded in 2015 and is one of the largest investors in the crypto industry. It was estimated last year by investors such as Singapore's State Fund Gic, Google's Venture Arm CapitalG and Softbank at $ 10 billion, and its subsidiaries include Genesis and the investment manager Grayscale.

dcg itself owes her subsidiary Genesis money; These intercompany loans have complicated the image for the creditors.

DCG has outstanding debts worth $ 2 billion, of which $ 1.7 billion is due to two loans of the own subsidiary Genesis. In the course of the summer, Genesis lost $ 1.1 billion through a loan to the collapsed hedge fund Three Arrows Capital. DCG then took over the liabilities of Genesis and owed genesis 1.1 billion. Silbert said investors last week that DCG lent a separate $ 575 million of Genesis "on customary market conditions" in order to finance unexpected investments and stock returns from non -employed shareholders.

"They negotiate together because of the type of liabilities," said a person who is familiar with the matter of the approach of Genesis and DCG to the creditors.

DCG did not respond to inquiries about comments. The Financial Times revealed last week that part of the borrowing of DCG was used to finance its investments in another of his subsidiaries, Grayscale.