Crypto Gloss

Genesis Trading

Genesis Global Trading is a New York-based institutional crypto prime brokerage, lending, and OTC trading firm founded in 2013 as part of Digital Currency Group (DCG) — Barry Silbert’s crypto conglomerate. Genesis was the largest institutional Bitcoin OTC trading desk for most of crypto’s history (2013–2022) and became the dominant institutional crypto lender, with loan originations exceeding $130 billion cumulatively. The firm suffered $2.4 billion+ in losses when Three Arrows Capital defaulted in June 2022 and further exposure to FTX’s collapse, filing for Chapter 11 bankruptcy in January 2023. The Genesis collapse — and DCG’s role in attempting to obscure the losses — became the defining institutional insolvency of the 2022–2023 contagion cycle.

Background

Genesis was founded as the first licensed Bitcoin OTC desk, providing institutional clients with large Bitcoin block trades at a time when exchange liquidity was insufficient for multi-million dollar transactions. Under Barry Silbert’s DCG umbrella (which also owns Grayscale and formerly owned CoinDesk), Genesis expanded from OTC spot trading to institutional lending, custody, and derivatives — effectively becoming the Goldman Sachs of crypto lending.

Key Business Lines

Division Description
Genesis Capital Institutional lending arm; over $10B in outstanding loans at peak
Genesis Global Trading Institutional OTC spot and derivatives trading desk
Genesis Custody Digital asset custody for institutional clients

The 3AC Default and DCG Loan

When Three Arrows Capital defaulted on $2.4 billion owed to Genesis:

  1. Genesis was technically insolvent
  2. DCG extended a $1.1 billion promissory note to Genesis to paper over the hole
  3. This promissory note was structured with 10-year duration — meaning Genesis could not access the capital — and its disclosure became a major dispute with Genesis’s creditor Gemini Trust

Gemini Earn and Retail Exposure

Genesis partnered with Gemini (the Winklevoss exchange) for Gemini Earn — a retail interest account product where Gemini customers lent assets through Genesis. When Genesis froze withdrawals in November 2022 (post-FTX), ~$900 million in Gemini Earn customer funds were locked. Tyler Winklevoss subsequently launched a public campaign accusing Barry Silbert of fraud.

Bankruptcy and Resolution

Genesis filed Chapter 11 in January 2023. DCG faced potential liability and Silbert’s communication with Genesis creditors became subject to investigation. A settlement was reached giving creditors significant recoveries funded by DCG asset sales, including the eventual sale of CoinDesk media.

Related Terms

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