Crypto lender Genesis says no plans to file bankruptcy imminently

Author of the article: Publishing date: Nov 21, 2022  •  8 hours ago  •  1 minute read Join the conversation Cryptocurrency lender Genesis said on Monday it has no plans to file for bankruptcy imminently, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions. “We have no plans to file bankruptcy…
Crypto lender Genesis says no plans to file bankruptcy imminently

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Nov 21, 2022  •  8 hours ago  •  1 minute read

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Cryptocurrency lender Genesis said on Monday it has no plans to file for bankruptcy imminently, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions.

“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.

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A report from Bloomberg News, citing sources, said that Genesis was struggling to raise fresh cash for its lending unit, and warning 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 an 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.

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. (Reporting by Manya Saini and Lavanya Sushil Ahire in Bengaluru; Editing by Sriraj Kalluvila and Rashmi Aich)

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