Genesis is in no hurry to return money to customers

The administration of the Genesis cryptocurrency platform, which is now in great difficulty and is on the verge of bankruptcy, says that it will present a plan to return funds to customers no earlier than 2023. They shared such news in letters sent to their clients.

Genesis said it would take several weeks to develop a refund plan and declined to give any specific date. The cryptocurrency broker also assures users that it will be negotiating with its parent company Digital Currency Group in order to find the most efficient way to preserve clients' assets.

After several cryptocurrency exchanges filed for bankruptcy and no longer serve their customers, Genesis also came under attack. The division decided to close the withdrawal of funds to its clients and now their debt to users of the Gemini Earn service exceeds $900,000,000, as reported by the journalists. Also, earlier it was reported that several more groups appeared that reported Genesis's debt in their direction. So, according to experts, a cryptocurrency creditor's office owes about $1,800,000,000.

In addition to Genesis, related organizations such as the Digital Currency Group and others also suffered. DCG, by the way, owe Genesis a whopping $1,700,000,000. Previously, Digital Currency Group suffered heavy losses due to the bankruptcy of Three Arrows Capital. As a result, DCG lost about $1,100,000,000 because of this.

In the vastness of various information fields, information is circulating about the search for investors that could save the cryptocurrency broker from bankruptcy. As for Genesis, they have already turned to the lawyers of the investment bank Moelis & Company.

2022 has become an unpleasant year for the cryptocurrency industry. During 2022, several crypto-related companies managed to close. Three Arrows Capital, BlockFi and the American cryptocurrency exchange FTX have been derailed.

The Alabama Securities and Exchange Commission launched their investigation into the financial difficulties of Genesis. They want to understand whether the representatives of the cryptocurrency company forced American clients to invest their funds in securities or not. Their suspicions in this direction were reported by Barron's, which referred to Joseph Borg, one of Alabama's regulators. So far, the Alabama Securities Commission has not filed any formal charges against Genesis, but that could change.