Genesis owes $13,200,000 to Stellar Development Foundation

The situation with FTX has affected many cryptocurrency companies and exposed them to great risks. One of these victims was the Genesis cryptocurrency platform. The company is facing major financial difficulties. As a result, the exchange filed for bankruptcy. Recently, new details have surfaced regarding Genesis debt.

Turns out they borrowed $13,200,000 from the Stellar Development Foundation last year. It is noteworthy that the cryptocurrency platform was mired in huge debts, taking loans from 50 significant creditors, and their total amount reached $3,400,000,000.

It is noteworthy that the Stellar Development Foundation acted as one of these 50 creditors. In a statement, the fund, which describes itself as a non-profit organization, said in an email to Forbes that they provided a “limited series of loans” in 2022.

They added the following:

The outstanding claim represents a non-essential portion of our overall treasury and does not affect our operations in any way as we remain well funded to fulfill our current and future mission of creating equal access to the global financial system.

The Stellar Development Foundation is committed to supporting the development and growth of the Stellar network. Various well-known investors and even entrepreneurs from Silicon Valley help the company achieve their goals.

Such influencers include OpenAI CEO Sam Altman, Stripe CEO Patrick Collison, and venture capitalist Keith Rabois.

In total, the Stellar Development Foundation has invested about $55,000,000 in cryptocurrency and payment startups, $13,200,000 of which came from Genesis. Other iconic Stellar Foundation collaborators included payments company MoneyGram and the United Nations Refugee Agency.

The founder of the Stellar Development Foundation was one of the few cryptocurrency billionaires who managed to avoid the loss of funds after the collapse of FTX. The reason for this was the timely fixation of income at the peak of the last bitcoin cycle.