Genesis Told to Follow Terra's Request in 5 Days

A New York court has told Genesis, a company that lends cryptocurrency and trades it, that they must do what a special request from Terra says in the next five days. They didn't do what they were supposed to do by October 9, as the court said.

Terra had a big problem last year when its special kind of cryptocurrency, called terraUSD, which was supposed to be like regular U.S. dollars, stopped working correctly. This surprised a lot of people who use cryptocurrencies, and then the Securities and Exchange Commission took Terraform Labs, the company that made terraUSD, and one of the people who started it, Do Kwon, to court because they had told people things that weren't true.

A judge named Jed Rakoff talked about this in a letter that he wrote on Friday. He said that the Genesis companies, which are a part of the same group as CoinDesk and Digital Currency Group, hadn't given the things that Terra asked for. Terra asked for these things on September 12, and the things they asked for are information that can help explain what happened with terraUSD.

We don't know exactly what Terra asked for because the letter doesn't say, but we know that Genesis gave a lot of money to a hedge fund called Three Arrows Capital, which isn't around anymore. Three Genesis companies said they couldn't pay their bills in January, and the part of the company that does trading in the U.S. stopped working in September.

The judge is also trying to find a way to talk to Do Kwon about this problem. Do Kwon's lawyers said he couldn't come to the U.S. because he's in jail in Montenegro for having a fake passport, but the judge said that's not true and that he should answer questions in this case.

Nobody from Genesis talked about this right away when they were asked.