The Creators of Decentraland Metaverse Are Creditors of the Insolvent Genesis
The first fully decentralized world, Decentraland Metaverse is controlled via the DAO, which owns the most important smart contracts and assets of Decentraland.
How Decentraland Metaverse is Linked to Genesis Global
Three Decentraland Metaverse employees, including two of the platform’s co-founders and its CFO, are listed as among Genesis Global, the now-defunct bitcoin lendertop’s creditors.
Esteban Ordano, Ari Meilich, and Santiago Esponda, the chief financial officer of Decentraland Metaverse, are among the 50 largest non-insider unsecured claims against Genesis, which on Thursday sought Chapter 11 bankruptcy protection in the US.
On the same day that it filed for bankruptcy, the cryptocurrency lender disclosed the identities of its biggest debtors, which included the crypto exchange Gemini, the trading behemoth Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
Another company on the list with a $55 million claim was Heliva International Corp. The company provided Santiago Esponda, the CFO of Decentraland, as a contact person.
A closer examination of the document indicates that Esponda is not the only co-founder of Decentraland identified with non-Decentraland email accounts.
Ordano is named as the contact for another business called Winah Securities, to which Genisis owes over $27 million, and who is currently a Decentraland advisor. Notably, the paper indicates that Winah is housed in the same building as Heliva, on the same floor.
And finally, Meilich’s gaming company Big Time Studios is owed $20 million by Genesis. Ari Meilich was a co-founder and served as the project head there until April 2020, according to his LinkedIn page. He continues to serve as a Decentraland Metaverse advisor.
After weeks of rumors regarding the financial stability of the crypto lender, Genesis finally filed for Chapter 11 bankruptcy protection on Thursday. The bankruptcy petition also listed Genesis Global Holdco LLC’s subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific Pte.
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Genesis projected more than 100,000 creditors, between $1 billion and $10 billion in liabilities, as well as assets, in the statement. The assets and liabilities of Genesis Global Capital LLC and Genesis Asia Pacific Pte were assessed to be in the amount of $100 million and $500 million, respectively.
Genesis intends to raise money or sell assets through the Chapter 11 procedure, according to a Bloomberg article. If these efforts are unsuccessful, creditors will ultimately possess the rebuilt company. Additionally, the business has $150 million in cash available that would be used to pay for the bankruptcy proceedings.
Recall that Genesis stated in mid-November of last year, following the demise of cryptocurrency exchange FTX, that it was stopping redemptions and new loan originations because “abnormal withdrawal requests” had surpassed its “current liquidity.”
Genesis and the significant cryptocurrency exchange Gemini, established by Cameron and Tyler Winklevoss, have been engaged in a public conflict. Genesis owes the twins more than $900 million. Barry Silbert, CEO of Digital Currency Group, has received criticism for how he has been managing things, and some have even asked for his resignation.
