Two public pension funds in Virginia are affected by Genesis’ demise.
- The top 50 creditors of Genesis are owed around $3.5 billion, and at least one of them is connected to the $6.8 billion Virginia Pension System.
- In Fairfax County, Virginia, two pension funds contributed $35 million to Genesis Lender.
- Genesis declared bankruptcy last week after learning about FTX and Three Arrows Capital, two unsuccessful businesses.
Digital Currency Group (DCG subsidiary)’s for cryptocurrency financing, Genesis Global Capital, filed for Chapter 11 bankruptcy protection on Thursday. Two public pension funds in Fairfax County, Virginia, are among the companies with exposure to the struggling lender.
According to the bankruptcy petition, Genesis estimated more than 100,000 creditors and asserted obligations totaling $5.1 billion. The company owes its top 50 debtors a total of around $3.5 billion, one of whom is connected to Virginia’s nearly $7 billion pension fund system.
The joint pension fund investment in VanEck Fund, which is listed as a Genesis creditor, was $35 million. Investors in VanEck’s New Finance Income Fund included Fairfax County Employees’ Retirement System and Fairfax County Police Officers’ Retirement System Investment Managers. A $53 million claim was made against Genesis.
The VanEck Fund “seeks to create income opportunities for investors through a simpler approach to short-term lending arrangements with digital asset businesses,” according to a press statement announcing the retirement system’s investment in the fund. Last year, it was created.
Genesis’ financial problems were caused by its exposure to the defunct cryptocurrency fund Three Arrows Capital after that company’s failure to fully recoup its $2.3 billion debt from the previous year. Genesis owned $175 million in FTX, the defunct cryptocurrency exchange founded by Sam Bankman-Fried. Genesis’ parent company, DCG, has also reduced expenses by freezing dividend payments.
Jack Tan, the co-founder of cryptocurrency trading platform WOO Network, told Insider that “Unfortunately, Genesis’ difficulty illustrates that the infection from FTX is not gone, and it could further hinder adoption and trust from institutions.”
FAQS:
How long will reading this news story take?
The average reader will need 2 to 3 minutes to finish reading the article “A couple of public pension funds in Virginia have exposure to the collapse of crypto lender Genesis, It is made up of 36 sentences and 323 words.
What are people saying right now about this news story?
The current attitude for this story is Neutral, meaning that no good nor negative reactions have been reported.
What media outlet reported on this story?
A US-based news outlet called Business Insider carried the topic “A couple of public pension funds in Virginia have exposure to the collapse of crypto lender Genesis” 4 days ago.
