Debt size of crypto broker Genesis as of January 2023

Crypto broker Genesis owes creditors billions worth of debt, most of which to the Winklevoss twins' crypto exchange Gemini. This is according to various pieces of research and conversations held by multiple sources since November 2022. Genesis is a major crypto lender that allowed "staking" - a practice where people could loan out their cryptocurrencies to Genesis for high interest. This company is part of Digital Currency Group (DCG), a crypto venture capital firm with investments in Coinbase, Kraken, and Blockchain.com, but also the now-insolvent FTX. Genesis' already had problems in June 2022 - when crypto investment fund Three Arrows Capital collapsed, to which Genesis filed a 1.2 billion U.S. dollar claim - but those continued during the FTX collapse in November 2022 as it had to halt customer withdrawals. The broker, insider information from January 2023 stated, had debts to U.S. crypto exchange Genesis and the Netherlands' largest crypto exchange Bitvavo. The story gained much media traction, as it highlighted the vulnerabilities of the crypto market amidst the so-called "crypto winter" and a potential further case for regulation of the industry. This was accelerated further on January 12, when the U.S. Securities and Exchange Commission (SEC) announced investigations into both DCG and Gemini.