Genesis Global Capital labeled a $1.1 billion promissory note from parent Digital Currency Group as a current asset in conversations with creditors, bolstering the appearance of a stronger balance sheet, five sources told The Block.
That's according to several sources and creditors who spoke to The Block and provided documents to back up their claims. The creditors and documents confirm a claim made last week by Gemini's Cameron Winklevoss in his most recent salvo against DCG and its founder and CEO Barry Silbert. Winklevoss and the other creditors all insist they were misled about the financial health of Genesis.
Promissory notes are generally considered liabilities on balance sheets. Listing the note under assets, as is claimed by the creditors, provides the appearance of a stronger balance sheet.
Documents seen by The Block from October and November show that Genesis's accounts listed over $1.7 billion under the Current Assets column in "other assets." This figure is slightly below the $2 billion from July, seen in Gemini's recent filing, but in line with the firm's claims.
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