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Struggling Cryptocurrency Lender Genesis Owes Debtors $1.8B

Genesis owes at least $1.8 billion to its creditors, according to multiple media reports.

The troubled crypto trading and lending company owes users of Gemini's Earn program $900 million and another $900 million to a group of assorted debtors represented by law firm Proskauer Rose.

Another ad hoc group of Genesis creditors is being represented by the law firm Kirkland & Ellis in addition to Proskauer.

See Also: Genesis Could Go Bankrupt Without Financing

A group of Gemini customers is represented by the law firm Latham & Watkins. After suffering significant losses from FTX and earlier from Three Arrows Capital, Genesis ceased customer withdrawals last month.

The company has been attempting to raise capital and has retained investment bank Moelis & Company to help it evaluate alternatives, which may include filing for bankruptcy.

State securities regulators in the U.S. are apparently investigating Genesis.

According to Barrons, Alabama is one of the states investigating whether Genesis "enticed residents to invest in crypto-related securities without making th proper registrations."

Also read: BlackRock CEO Says FTX's Token Caused Its Collapse, But The Technology Is Still Cutting Edge

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