The Creditors of Bankrupt Genesis are Decentraland Founders

Decentraland founders are creditors of Bankrupt Genesis – How Much Do They Owe?

Three Decentraland executives, two of which were co-founders, and the platform’s chief financial officer, are among the top creditors to Genesis Global, a now-bankrupt cryptocurrency lender.

Co-founders of Decentraland, Ari Meilich (Decentraland) and Santiago Esponda (Platform’s CFO) are listed as among the 50 largest noninsider unsecured claims against Genesis. Genesis filed for Chapter 11 bankruptcy protection in America on Thursday.

On the day it filed for bankruptcy, the crypto lender disclosed the names of its biggest creditors, including trading giant Cumberland, Mirana and MoonAlpha Finance.

Heliva International Corp, a company with a claim of $55 million, also made it onto the list. As a contact point, the firm listed Santiago Esponda, Decentraland’s Chief Financial Officer, as an option

Apart from Esponda’s name, the document also lists Decentraland’s co-founders with non-Decentraland email addresses.

Ordano is an advisor at Decentraland and is listed as the contact person for Winah Securities, which Genisis owes approximately $27 million. The document also shows that Winah is on the same floor as Heliva.

Finally, Genesis owes $20 Million to Meilich’s Big Time Studios gaming company. According to his LinkedIn profile Ari Meilich was co-founder of Decentraland. He worked there until April 2020, when he left to start his own company Big Time Studios. He is still a Decentraland advisor.

After weeks of speculation over the financial health of Genesis, Genesis filed for Chapter 11 bankruptcy protection. The bankruptcy filing included Genesis Global Holdco LLC, Genesis Global Capital LLC, and Genesis Asia Pacific Pte.

Genesis filed a filing that included more than 100,000 creditors, $1 billion to $10 billion in liabilities and assets. Genesis Asia Pacific Pte and Genesis Global Capital LLC, the two other entities, estimated their assets in the $100 million to $500 million ranges.

According to Bloomberg Report Genesis plans to use Chapter 11 to sell assets or raise funds. If all these efforts fail, creditors will take over the reorganized company. The company also has cash in excess of $150 million that could be used to finance the bankruptcy process.

Genesis reminded that it had suspended redemptions and new loan originations mid-November following the collapse crypto exchange FTX. It stated that “abnormal withdrawal requests exceeded its current liquidity”.

Genesis is currently embroiled in a dispute with Gemini, a major crypto exchange, which was founded by Tyler Winklevoss and Cameron Winklevoss. Genesis owes the twins more than $900 millions. The due is not agreed with the way DCG CEO Barry Silbert handled things. He was even asked to be removed as CEO of Digital Currency Group.

By David Warsh

David Warsh is a leading expert in the field of cryptocurrency and blockchain technology. With over a decade of experience in the industry, he has a deep understanding of the intricacies of digital currencies and the potential they hold for revolutionizing various industries.