Genesis Capital’s Settlement Disrupted by Creditors

Genesis Capital, a troubled digital currency company, has hit another roadblock in its settlement process, just two months after reaching an initial agreement with creditors. The company’s parent firm, Digital Currency Group (DCG), has issued a statement on Twitter announcing that Genesis has filed a motion for mediation due to renewed demands from creditors.

In February, Genesis Capital submitted a comprehensive settlement proposal to the bankruptcy court after reaching an “agreement in principle” with DCG and its creditors. Under the proposed restructuring plan, Genesis creditors were expected to recover 80% of funds lost due to the company’s collapsed operations.

However, DCG has now reported that Genesis creditors have raised their demands, significantly disrupting the ongoing court process. “While it is difficult to understand the rationale given the limited engagement from Genesis creditors since the February court filing, our understanding is that a subset of creditors have decided to walk away from the prior agreement,” DCG wrote.

The disruption has raised concerns about the timing of the settlement process, with some experts questioning whether the prolonged proceedings could harm the company’s chances of recovery. However, others have suggested that the additional mediation may ultimately help resolve outstanding issues and pave the way for a successful restructuring.

Genesis Capital’s struggles come amid broader uncertainty in the digital currency market, with many investors and companies grappling with regulatory challenges and price volatility. The company’s difficulties are particularly notable given its high profile in the industry; Genesis has been a leading provider of digital asset lending and borrowing services, with a portfolio of more than $15 billion in assets.

Despite these challenges, DCG expressed confidence in Genesis’ ability to weather the storm. “We believe that Genesis is well-positioned to continue to provide best-in-class digital asset services,” the company wrote. “We remain committed to working through these challenges in partnership with our creditors and the broader digital asset community.”

The case underscores the challenges facing digital currency companies as they navigate a rapidly evolving regulatory landscape and seek to establish themselves as viable players in the broader financial ecosystem. With Genesis’ future hanging in the balance, the industry will be closely watching to see how the settlement process unfolds in the coming months.


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China: Bitmain-Funded Firm to Completely Decarbonize Its Crypto Mining Operations

SAITECH, a company aiming to solve the climate change crisis, plans to eventually power its crypto mining operations with 100 percent renewable energy, significantly reducing their carbon print emissions in line with China’s strong national policies on decarbonizing by 2060, a new report on June 29 shows.

SAITECH Going Green and Decarbonizing

Per their estimation, up to 50 percent of China’s energy requirements will be from renewable sources by 2030.

In combination with their aggressive styles, primarily fashioned around heat recirculation and conversion to energy economic empowering projects such as heating greenhouses, the country’s carbon footprint will continue tapering from current levels.

Their commitment towards this objective follows SAITECH’s joining of the United Nations Framework Convention on Climate Change (UNFCCC) Climate Neutral Now initiative, effectively becoming the first digital asset company agitating for clean energy use.

The UNFCCC provides scientific methods to help corporations reduce their carbon footprints. Under this pact with the United Nations, SAITECH is committing to reduce carbon emissions and achieving carbon neutrality by angling to provide clean computing power.

It has subsequently formed a non-profit, Organization of Clean Energy and Computing (OCEC), where, among others, cryptocurrency mining companies are free to join.

Benefits of being part of this group include access to green energy supplies, technical guidance for members looking to convert their energy sources from thermal to renewables, and more.

Investment from Crypto Leaders, Bitcoin Mining Energy Requirements Draw Environmentalists’ Ire

SAITECH has thus far received $2.8 million in funding in a round led by Genesis Capital.

Bitmain, the world’s largest chipset manufacturer of Bitcoin mining gear, contributed $1.4 million during the seed round.

In recent times, bitcoin mining and other Proof-of-Work consensus systems have come under sharp criticism from environmentalists.

Concerned about their gigantic energy requirement–of which critics say are sourced from fossil sources, make them urge governments to clamp down on cryptocurrency mining operations.

Crackdown in China

Towards that end, as BTCManager reports, the Chinese government began cracking down on crypto mining operations in major hubs around the country, including Xinjiang and Sichuan.

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Traditional Lenders Extended Millions in Loans to the Crypto Space Through Genesis in Q4

Several institutions are parking their idle cash on Genesis Capital’s balance sheet, the cryptocurrency lender and trading firm announced in its fourth-quarter earnings report Tuesday.

Over the period, the total volume of Genesis’ active loans outstanding increased by 81% to $3.8 billion, while loan originations increased by 46% to $7.6 billion. The average U.S. dollar or stablecoin loan size to Genesis doubled from $2 million to $4 million in the fourth quarter, and the average loan size for first-time lenders on Genesis’ platform increased from $590,000 to $3.2 million.

These results are in line with observations by economists who’ve noted that institutions are saving more and investors are searching for yield amid a low interest rate environment that will persist during the pandemic-induced recession.

“The space is just bigger,” Genesis CEO Michael Moro said. “We’ll see more and more people buying from the spot market for the first time, borrowing and lending for the first time … the hope is to continue to be able to unlock more supply, that we will be able to get more traditional lenders lending dollars into the crypto space, to hopefully keep interest rates under control.”

While bitcoin and ether continue to take up a larger share of the loan book pie, Genesis still saw increased demand for dollar loans “mostly from market neutral types of hedge funds and prop trading firms as they are able to continue to arbitrage the spot and the futures market,” Moro said. This stood in contrast to Genesis’ Q3 report which showed ETH loans rapidly increasing after the summer’s DeFi craze. 

BTC is now around 54% of the pie and ethereum 15.5%, compared to 40.8% and 12.4% respectively at the end of the third quarter. XRP has shrunk to 0.4% of the portfolio, down from 1.4% after Genesis chose to stop borrowing and lending in the cryptocurrency in the wake of the U.S. Securities and Exchange Commission’s (SEC) suit against Ripple.

In the earnings report, Genesis called on central banks to include stablecoin data in their datasets. Moro described stablecoins as derivatives on the M1 money supply (M1 includes very liquid monies such as cash, demand deposits, and traveler’s checks; M2 includes less liquid money like savings and time deposits, certificates of deposits, and money market funds).

“You have to have a U.S. bank account to access U.S. dollars,” Moro said. “The advent of stablecoins have made it so that the remote farmer in the middle of India can have USDC if they have an ethereum address. You have increased the accessibility of U.S. dollars globally which I don’t think people have thought about.”

Moro said he predicts that central banks around the world are going to be wary of their citizens having easy access to the dollar and that the U.S. Federal Reserve is going to avoid having a dollar that is too strong, which would lead to an export/import imbalance if U.S. goods become too expensive for other countries to purchase.

“I don’t think you can put the USDC genie back in the bottle,” Moro said. “Once you’ve done the USDC route it’s really hard to kind of go back … It’s literally telling people, this fantastic thing, you can’t do it anymore, and go back to the bank wires.”

Derivatives rise in the bull market

Genesis’ derivatives trading desk also saw record volumes last quarter, with traders looking to hedge their risks as they got into the bull market. 

Derivatives trading increased by 350% to $4.5 billion in total traded volume, and spot trading increased by 80% to $8.1 billion in total traded volume. 

“People are interfacing directly with us as a liquidity provider on CME and some of the other exchange venues,” said Joshua Lim, head of derivatives at Genesis. “We’re acting as a block liquidity provider because people want larger sized orders.”

See also: Compared to Traditional Banks, Crypto Lenders See Booming Growth



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SBF leads $50M funding round to bring DeFi to’s 140M users

Leading offline mapping application has conducted a $50 million seed funding round to embed decentralized finance tools onto its platform.

The funding round for “ 2.0” was led by Sam Bankman-Fried of Alameda Research and also featured participation from crypto venture heavyweights CMS Holdings and Genesis Capital. 2.0 will be a wide-ranging application, featuring travel guides, hotel bookings and mapping services, in addition to exchange features and a multicurrency crypto-asset wallet offering annual yields of up to 8%.

Alex Grebnev, the co-founder of 2.0, told Cointelegraph that users will be able to “generate yield on their savings by directly lending it out securely to borrowers.”

“We also plan to give our users the ability to trade a wide range of assets that are not limited by geographical boundaries or transaction size.” claims to be the first “mainstream app” to embrace DeFi, with the application boasting a user base of more than 140 million after eight years of operation. Around 60 million users were active in 2020. Bankman-Fried said:

“By embedding and democratizing access to yield-earning finance to millions of users via an everyday app, has the potential to really propel DeFi mainstream adoption and bring a groundbreaking technology to the masses.”

The announcement states the platform intends to “break down financial silos determined by nationality or net worth” through its DeFi integrations. Grebnev further explained: 

“The industry is waiting for a catalyst for the mass adoption of DeFi tools and we’re excited to make this a reality by leveraging our active userbase as a means to bootstrap a retail community for a new innovative DeFi platform on”

“Our long-term vision is to create an embedded platform that combines a broad range of financial services that provide an easier way to invest, pay, and travel. We see the ability to bundle things like foreign exchange, investing, credit card, and peer-to-peer payment services — with low fees, no hidden costs, and strong loyalty incentives,” he added. was launched in 2012 under its old name MapsWithMe and was acquired by for roughly $14 million in 2014. On Nov. 2, 2020, Daegu Limited, a member of Grebnev’s Group, purchased the app for nearly $20 million.

Grebnev told Cointelegraph that Parity acquired with the objective of building “an ecosystem that integrated DeFi tools with a platform that had a large user base.”


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