Cryptocurrency Update: Days after being forced to halt customer redemptions due to the collapse of cryptocurrency exchange FTX, cryptocurrency lender Genesis stated on Monday that it had no immediate intentions to declare bankruptcy.
“We don’t have any immediate plans to declare bankruptcy. Our intention is to reach a mutually agreeable resolution to the current situation without declaring bankruptcy, “Genesis continues to speak with creditors, a spokesperson for the company said in an email statement to Reuters.
Reports from Bloomberg and Wall Street
According to a Bloomberg News story quoting sources, Genesis is having trouble finding new money for its loan division and has warned investors that if funding cannot be found, it may have to declare bankruptcy.
Additionally, according to sources cited by the Wall Street Journal, the company approached cryptocurrency exchange Binance in an effort to secure an investment, but Binance declined out of concern for a potential conflict of interest.
According to the article, Genesis also requested cash assistance from Apollo Global Management, a private equity firm.
Apollo and Binance both declined to comment when Reuters reached out to them for a response to the WSJ report.
Cryptocurrency Update: Genesis suspended some customers
The sudden failure of Sam Bankman-cryptocurrency Fried’s exchange FTX was cited by Genesis Global Capital as the reason for the suspension of customer redemptions in its lending business last week.
Gemini, a cryptocurrency exchange that collaborates with Genesis to offer a crypto loan product, tweeted on Monday that it was still working with Genesis to make it possible for its users to withdraw money from the latter’s yield-generating “Earn” programme.
Gemini said last week on its blog that the suspension of Genesis withdrawals had no effect on any of its other products or services.
Genesis asked for a emergency loan
The Wall Street Journal reported on Thursday that Genesis had asked investors for a $1 billion emergency loan before it halted withdrawals.
In the highest-profile crypto meltdown to date, FTX filed for U.S. bankruptcy protection earlier this month after traders withdrew billions from the platform in just three days and rival exchange Binance abandoned a rescue arrangement.
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