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Ex-Genesis execs claimed they raised money for crypto hedge fund earlier than chapter – EAST AUTO NEWS

Ex-Genesis execs claimed they raised money for crypto hedge fund earlier than chapter


Simply weeks earlier than crypto lender Genesis filed for chapter, three former workers of the corporate claimed they’d secured tens of millions of {dollars} for a brand new crypto hedge fund, in accordance with correspondence seen by CNBC.

Matt Ballensweig, who left Genesis in September after greater than 5 years on the agency, despatched a message to a potential investor in mid-December, concerning a fund he was beginning known as Looking Hill Digital. Ballensweig stated he had already secured $2.5 million from Bessemer Enterprise Companions at a $30 million post-money valuation, and wrote within the message that he and his companions have been within the technique of elevating one other $5 million.

Bessemer advised CNBC in an e mail that they aren’t an investor in Looking Hill Digital.

The fund’s “flagship product” would go dwell within the first quarter of 2023, the message stated.

Different companions within the fund would come with Martin Garcia, who spent greater than six years at Genesis, and Reed Werbitt, Genesis’ former head of buying and selling, the message stated. Werbitt, Garcia, and Ballensweig all left Genesis across the identical time in 2022.

Genesis, which is owned by Barry Silbert’s Digital Forex Group, filed for chapter safety on Thursday, the most recent casualty within the business contagion attributable to the collapse of crypto alternate FTX in November. In its chapter submitting, Genesis listed over 100,000 collectors, with combination liabilities starting from $1.2 billion to $11 billion {dollars}.

Ballensweig was named in authorized filings surrounding the implosion of Genesis’ lending e book. Gemini, a crypto alternate and main Genesis consumer, accused Ballensweig of falsely reassuring Gemini in July that Genesis was financially steady. Gemini claimed that Ballensweig advised its representatives that Genesis had “capital to function… for the long run,” in accordance with courtroom filings.

Ballensweig didn’t reply to a request for touch upon the allegations made in opposition to him by Gemini or on his current capital increase.

Ballensweig spent his ultimate 9 months at Genesis as managing director and co-head of buying and selling and lending.

The ex-Genesis workers teamed up with Adam Guren from hedge fund Looking Hill, Ballensweig stated. Looking Hill is a $718 million hedge fund, which launched in 2010 and moved into digital asset investing in 2020 with a crypto alternatives fund.

Looking Hill didn’t instantly reply to a request for remark.

Ballensweig pitched the flagship product as an “alpha multistrat (delta impartial),” or a fund specializing in multi-strategy, low-risk, high-return investments. He added that the trio would additionally launch two different beta merchandise together with a “Prime 25 Index” and a “DeFi beta.”

“Suppose you would be a priceless early accomplice,” Ballensweig stated in his pitch.

Ballensweig is not the one Genesis alum in search of to launch a fund. Roshun Patel, a former vice chairman at Genesis who left the corporate in March after virtually 4 years, was elevating money for a brand new fund in mid-2022. CNBC reached out to Garcia, Werbitt and Patel for touch upon their raises however didn’t instantly hear again.

WATCH: Crypto lender Genesis recordsdata for chapter

Crypto lender Genesis files for bankruptcy, and bitcoin reclaims $21,000 level: CNBC Crypto World
Ex-Genesis execs claimed they raised money for crypto hedge fund earlier than chapter – EAST AUTO NEWS
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