Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Sam is a reporter at CoinDesk focused on decentralized technology, DeFi and DAOs. He owns ETH, BTC and MATIC.
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Stellar Development Foundation, a nonprofit organization set up to promote growth on the Stellar blockchain, was listed among the largest creditors of Genesis, the beleaguered crypto lending giant that filed for bankruptcy protection on Thursday.
The foundation has a claim for $13 million against Genesis, according to bankruptcy filings.
In a statement to CoinDesk, the foundation confirmed it loaned around $13 million to Genesis in 2022 but called the sum “immaterial” in relation to the rest of its treasury.
“The outstanding claim represents an immaterial portion of our overall treasury and does not impact our operations in any way,” according to a Stellar Development Foundation representative.
According to its websitethe “Stellar Development Foundation currently holds 30 billion XLM to be used for promoting and enhancing Stellar.” At current prices, Stellar’s holdings of its native XLM token place the paper value of its treasury above $200 million.
Though the foundation claims it has weathered the Genesis fiasco relatively unscathed, the entanglement of an ecosystem fund’s assets with the over-the-counter crypto lending desk underscores just how widespread the contagion of the Genesis fallout might be.
Also among the largest Genesis creditors revealed in Thursday’s bankruptcy filings were pension funds of Fairfax County, Virginia, and MoonAlpha Financethe team behind Babel Finance, which is owed $150 million.
Genesis is owned by the crypto conglomerate Digital Currency Group (DCG), which also owns CoinDesk.
According to Genesis’s bankruptcy filings, it owes $3.5 billion to its top 50 creditorsincluding the Stellar Development Foundation.
Sign up for Valid Points, our weekly newsletter breaking down Ethereum’s evolution and its impact on crypto markets.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
DISCLOSURE
Please note that our
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
which invests in
and blockchain
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Sam is a reporter at CoinDesk focused on decentralized technology, DeFi and DAOs. He owns ETH, BTC and MATIC.
Learn more about Consensus 2023CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
