Bitcoin Moves Above $17,000 Despite Doubts About Genesis/Gemini

The bitcoin price held above the $17,000 level on Tuesday although doubts over the fate of the Genesis exchange appeared to stifle sentiment, after reports over the weekend showed the size of the company’s troubles.

At 0931 GMT, Bitcoin remained hovering above $17,000, having touched a three-week high of $17,420 in today’s trading. This move was helped by broad gains in risk assets as there was more news suggesting that China is moving away from the Zero-COVID policy that has hampered its economic growth throughout the year.

The Financial Times reported over the weekend that Genesis owed digital asset platform customers Gemini about $900 million, though that figure looks less alarming when you set aside the roughly $1.1 billion owed by its parent company, Barry Silbert’s Digital Currency Group. According to the FT, talks are ongoing between Genesis and DCG on how to resolve the intra-company lending issues.

Quoting FT, DCG has a total debt of $2 billion, of which $1.7 billion is owed to Genesis. In addition to the $1.1 billion in liability that DCG assumed to cover Genesis’ exposure to bankrupt hedge fund firm 3 Arrows Capital, DCG has also borrowed $575 million “under agreement” to fund DCG’s share buyback, among other things.

Genesis, which suspended customer recalls in mid-November days after being hurt by FTX’s bankruptcy, is a key partner of the ‘Earn’ program run by Gemini, a key asset in the core ventures of crypto pioneers Cameron and Tyler Winklevoss. Earn has also suspended payments, as negotiations over Genesis’ debt restructuring continue.