Fairfax County, Virginia, Pension Funds invested $35 million in a VanEck fund

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The parent company of cryptocurrency lender Genesis Global Capital, Genesis Global Holdco filed for Chapter 11 bankruptcy protection late Thursday because of its exposure to collapsed hedge fund Three Arrows Capital and fallen crypto exchange FTX.

Genesis owes over $3.5 billion to its top 50 creditors – and one of the creditors has ties to a $6.8 billion pension fund system in Fairfax County, Virginia. The list of creditors in the bankruptcy filing included the New Finance Income Fund from global asset manager VanEck with a $53 million claim against Genesis. The fund launched in December 2021 with a strategy of forming short-term lending arrangements with digital-asset entities to achieve high yields, according to VanEck’s website.

Fairfax County Pension Plan Invests in VanEck New Finance Income Fund

Credits: VanEck

Last July, VanEck made headlines when two of the funds in the $6.8 billion Fairfax pension system – the Fairfax County Employees’ Retirement System and the Fairfax County Police Officers Retirement System – invested a combined $35 million in the VanEck fund as part of a then-new yield strategy, which also included an investment in Parataxis Capital.

Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York after being pummeled by two of 2022’s biggest industry collapses.

Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC filed a trio of voluntary petitions with the United States U.S. Bankruptcy Court for the Southern District of New York. All three fall under the umbrella of Digital Currency Group. Genesis has moved for joint administration of the cases.

Virginia Retirement Systems Invest in VanEck's Crypto Lending Fund

Credits: CryptoPotato

Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York after being pummeled by two of 2022’s biggest industry collapses.

Genesis Global Holdco, LLC and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC filed a trio of voluntary petitions with the United States U.S. Bankruptcy Court for the Southern District of New York. All three fall under the umbrella of Digital Currency Group, which also owns CoinDesk. Genesis has moved for joint administration of the cases.

In its filing, Genesis Global Capital, the partner firm to Gemini’s defunct Earn program, estimated more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets. The two other entities estimated their assets and liabilities in the $100 million and $500 million range, respectively.

Genesis owes over $3.5 billion to its top 50 creditors, among which include crypto exchange Gemini, trading giant Cumberland, Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund, according to the bankruptcy filing published late Thursday.

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