Worrying news for DCG, and indirectly, Genesis Trading, which still owes Gemini Exchange at least $900m.
Coindesk, who broke the story about FTX and Alameda’s balance sheet and possible comingling of customer funds, is also owned by DCG ironically. Hopefully it survives any fallout from the parent, DCG.
Another domino falls.
If you thought this might help Gemini customers get back their deposits, not so fast. Genesis is saying it already fulfilled its obligation to pay back anything, to the tune of $284 million, only $485 million short of the actual balance due.
I smell lawyers and a drawn out legal battle. Gemini could make customers whole by paying them back out of it’s own pocket, and then going after Genesis separately. But that won’t happen sadly.