• The Stellar Development Foundation was revealed to be among the bankrupt crypto lending desk’s largest creditors with a claim for $13 million.
• The foundation has confirmed it loaned around $13 million to Genesis in 2022, but described the sum as “immaterial” in relation to the rest of its treasury.
• The Stellar Development Foundation currently holds 30 billion XLM to be used for promoting and enhancing Stellar, with the paper value of its treasury estimated to be above $200 million.
The Stellar Development Foundation, a nonprofit organization set up to promote growth on the Stellar blockchain, has been revealed to be among the largest creditors of the bankrupt crypto lending giant Genesis. According to bankruptcy filings, the foundation has a claim for $13 million against Genesis.
The foundation has confirmed the loan, saying that the loaned amount of $13 million to the lending desk in 2022 is immaterial when compared to the rest of its treasury. The Stellar Development Foundation currently holds around 30 billion XLM tokens, which gives it a paper value of over $200 million.
The entanglement between the Stellar Development Foundation and Genesis is the latest fallout from the crypto lending desk’s bankruptcy filing. Genesis had been operating since 2018, offering crypto-backed loans to customers in a variety of currencies.
However, due to a variety of factors, including the COVID-19 pandemic, Genesis was unable to keep up with its loan obligations and had to file for bankruptcy in January 2021.
In addition to the loan to the Stellar Development Foundation, Genesis has also received numerous other creditors who are seeking repayment. Among the larger creditors are Block.one, the company behind the EOS blockchain, and overseas exchanges FTX and OKEx.
In response to the bankruptcy filing, the Stellar Development Foundation has stated that it is working with Genesis and its creditors to ensure that the process is handled as fairly and efficiently as possible.
The Stellar Development Foundation is committed to ensuring that its loan to Genesis is repaid in full, and that its own interests are taken into account. The foundation is also continuing to actively support the Stellar blockchain, and its mission to promote growth on the platform.
Ultimately, the Stellar Development Foundation’s involvement in the Genesis bankruptcy serves as a reminder of the risks associated with crypto investments. While the foundation expects to be repaid in full, it is important to note that these types of investments can be highly volatile and unpredictable. Any investor considering such investments should be aware of the potential risks.