Troubled crypto lender Genesis is reportedly confident that it could emerge from its bankruptcy proceedings in just a few months.
According to a new report by Reuters, Sean O’Neal, an attorney for Genesis, says that the embattled crypto firm could resolve matters with its creditors as soon as this week and potentially restart its operations by late May.
Reuters says that Genesis, a subsidiary of billionaire Barry Silbert’s Digital Currency Group, intends to auction off various assets with the goal of exiting bankruptcy by May 19th.
According to the report, Genesis has been in negotiation with its creditors for two months now and is open to mediation if it becomes necessary. Brian Rosen, a lawyer representing Genesis’ creditors, says that the firm and its moneylenders are “getting closer” to reaching an agreement.
The firm also says its planning on holding an auction to sell a portion of its assets.
Voluntary bankruptcy documents filed earlier this week indicated that Genesis owes approximately $3.8 billion to its 50 biggest creditors, which include hedge fund manager VanEck, crypto exchange Gemini and the Stellar Development Foundation, the creators of payments platform Stellar (XLM).
The documents reveal the highest amount owed to a single creditor is the $765 million outstanding to the crypto exchange platform Gemini. Previously, Genesis and Gemini had collaborated to create Gemini’s Earn program, which allowed retail traders to loan out their virtual assets to earn interest.
The court documents show that Genesis owes $765 million to members of Gemini’s Earn program.
Genesis’ troubles initially began in 2022 after crypto hedge fund Three Arrows Capital went under and was unable to pay back a hefty loan. Its issues were further compounded when prominent crypto exchange FTX, which held some of its assets, disintegrated in November.