Cryptocurrency Lender Genesis Might Need to File for Bankruptcy
Genesis is facing a liquidity crunch after a torrent of withdrawals due to the FTX collapse
Cryptocurrency lender Genesis said on Monday it has no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions. The Digital Currency Group-owned brokerage declared this through an email statement, as reported by Bloomberg. Genesis opts to do outreach to investors and clients seeking credits for recovery.
“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing,” a Genesis spokesperson said in an emailed statement to Reuters, adding that it continues to have conversations with creditors.
A report from Bloomberg News, citing sources, said Genesis was struggling to raise fresh cash for its lending unit, and warned investors it may need to file for bankruptcy if it does not find funding.
Also, the Wall Street Journal reported, citing sources that the company approached crypto exchange Binance seeking investment but Binance decided against it, fearing a conflict of interest down the line.
Genesis also approached private equity firm Apollo Global Management for capital assistance, according to the report.
Apollo did not immediately respond to a Reuters request for comment on the WSJ report, while Binance declined to comment.
Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s crypto exchange FTX.
Crypto exchange Gemini, which runs a crypto lending product in partnership with Genesis, tweeted on Monday that it was continuing to work with the company to enable its users to redeem funds from its yield-generating “Earn” program.
In a statement on its blog last week, Gemini said there was no impact on its other products and services after Genesis paused withdrawals.
On Thursday, the Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion from investors before it suspended withdrawals.
Earlier this month, FTX filed for U.S. bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
The post Cryptocurrency Lender Genesis Might Need to File for Bankruptcy appeared first on Analytics Insight.
Genesis is facing a liquidity crunch after a torrent of withdrawals due to the FTX collapse
Cryptocurrency lender Genesis said on Monday it has no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions. The Digital Currency Group-owned brokerage declared this through an email statement, as reported by Bloomberg. Genesis opts to do outreach to investors and clients seeking credits for recovery.
“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing,” a Genesis spokesperson said in an emailed statement to Reuters, adding that it continues to have conversations with creditors.
A report from Bloomberg News, citing sources, said Genesis was struggling to raise fresh cash for its lending unit, and warned investors it may need to file for bankruptcy if it does not find funding.
Also, the Wall Street Journal reported, citing sources that the company approached crypto exchange Binance seeking investment but Binance decided against it, fearing a conflict of interest down the line.
Genesis also approached private equity firm Apollo Global Management for capital assistance, according to the report.
Apollo did not immediately respond to a Reuters request for comment on the WSJ report, while Binance declined to comment.
Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s crypto exchange FTX.
Crypto exchange Gemini, which runs a crypto lending product in partnership with Genesis, tweeted on Monday that it was continuing to work with the company to enable its users to redeem funds from its yield-generating “Earn” program.
In a statement on its blog last week, Gemini said there was no impact on its other products and services after Genesis paused withdrawals.
On Thursday, the Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion from investors before it suspended withdrawals.
Earlier this month, FTX filed for U.S. bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
The post Cryptocurrency Lender Genesis Might Need to File for Bankruptcy appeared first on Analytics Insight.
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