• Genesis Global Trading’s CEO Derar Islim has sent a letter to clients asking for more time to resolve the company’s financial crisis.
• This comes after a Twitter altercation between Barry Silbert, the CEO of Genesis‘ parent company Digital Currency Group and Cameron Winklevoss, the co-founder of Gemini, over the situation at Genesis.
• Winklevoss gave Silbert a January 8 deadline to resolve the issue.
The troubled crypto lender and market maker Genesis Global Trading has been facing a financial crisis since the fall of FTX in November. This has led to the halt of withdrawals from the lender, leaving many clients in a difficult situation. In an effort to address this issue, interim CEO Derar Islim has sent a letter to clients asking for more time to resolve the financial crisis.
The letter comes days after a Twitter altercation between Barry Silbert, the CEO of Genesis‘ parent company Digital Currency Group and Cameron Winklevoss, the co-founder of Gemini. Winklevoss criticized Silbert’s handling of the situation, noting that the frozen withdrawals had affected users of their Gemini Earn product. Consequently, Gemini is now facing a lawsuit concerning the halted product.
In the letter sent to clients, Islim expressed his commitment to resolving the issue as quickly as possible. He noted that it was a complex process and would require additional time. Winklevoss had previously stated that Genesis owed the exchange’s Earn product users a total of $900 million. He also gave Silbert an ultimatum of January 8 to resolve the situation. However, despite multiple proposals from Gemini, Genesis failed to acknowledge any of them.
The financial crisis has put a damper on the crypto market, as Genesis is one of the largest crypto lenders in the industry. The situation has attracted the attention of investors, regulators and other stakeholders in the industry. As of now, the future of the lender remains uncertain as the crisis is yet to be resolved.