M6 Wg6Cbnwy4Iogwvcyvhz Xxcwxkbdc Kjkue1Of7Ag03Tc19Yxxvelqlh8Ioyo5Tbmuvnov0Nquupfm Jarxzfpixzy7O1Xdw8A Deonbhrvcrw8E Vgokueimw9Prie7Karfqeqxzbjsq4S243Kg3Omauo F8N7Yj Gaqvye66Ndeiotkxkqcrvojkg

News in a Glimpse:

  • Genesis, a cryptocurrency lender, made it clear a few days ago that they had no intention of declaring bankruptcy right away.
  • In an email, they announced that they would approach clients and investors to seek credit for recovery rather than filing for bankruptcy.
  • The Genesis company does not currently have any plans to file for bankruptcy, according to a spokesperson, who also emphasized that the company wants to resolve their dispute amicably without going through with it.
  • According to reports, Genesis approached the cryptocurrency exchange Binance to ask for funding. Sadly, Binance rejected Genesis out of fear of a potential conflict of interest.
  • Genesis had also gotten in touch with private equity firm Apollo Global Management for financial support, but it was unclear how that action would turn out.
  • Genesis Global hired investment bank Moelis & Company to help them explore their options for their current situation, which could include bankruptcy.
  • Genesis has been under pressure from its creditors ever since the FTX collapsed, and when the exchange frozen accounts this month before declaring bankruptcy, $175 million of Genesis’ assets were reportedly still on the platform.
MEXC Banner Ads - 970x90

Genesis on the Verge of Collapse

Cazrryrlck8Txhklk1Hidp08Xcfw2Pqicgjah2Za1R8Oxl8Zzzi6Zactgdrbxisobsan4 Vv1Ve3Gvfiwx1Kotnk3Lzsb 39Aqiaxzv4Uvb5 Rptzvjkhtw8Lnbelp273Jhiftd5Kp2Dm4P9Wsf T7Jwbypqknvuxam4Gmmqjezr6U4Pq09Lkgodk5Jr6Q

A few days after the collapse of cryptocurrency exchange FTX forced it to halt customer redemptions, Genesis, the well-known cryptocurrency lender, made it clear that they had no plans to file for immediate bankruptcy on Monday, November 21.

The Digital Currency Group-owned brokerage made this announcement through an email statement, stating that rather than filing for bankruptcy, they would approach investors and clients to seek credits for recovery.

In an email to a news organization, a Genesis spokesperson asserted that the company has no immediate plans to file for bankruptcy. The representative went on to emphasize that they want to settle their dispute amicably without declaring bankruptcy. The representative also stated that they are still in contact with their creditor.

The recent news that the crypto lender firm was reportedly having trouble raising money for its lending unit, however, seemed to contradict this claim. Furthermore, according to the aforementioned report, Genesis was already warning its investors that it might need to file for bankruptcy if it cannot secure funding.

While a different report asserted that Genesis approached the cryptocurrency exchange Binance, where the latter was looking for investment. Unfortunately, Binance has turned against it due to its concern over a potential conflict of interest. The same report stated that troubled Genesis had also contacted private equity company Apollo Global Management for capital assistance, though it was unclear what the outcome of that move would be.

After Sam Bankman-cryptocurrency Fried’s exchange FTX went under, Genesis Global Capital last week stopped allowing customers to redeem their loans. On the other hand, the cryptocurrency exchange Gemini, which partners with Genesis to operate a crypto lending product, asserted via tweet that it would keep working with the business to allow its users to withdraw money from its yield-generating “Earn” program.

Genesis paused withdrawals earlier last week, then clarified that the FTX collapse has no effect on their other products and services. However, later that week, Genesis reportedly sought for an emergency loan of $1 billion from investors before it suspended withdrawals.

Genesis Hires a Reconstructing Adviser

Tj7Flvazeyl0Xdaqppf2Jb0Fi2Gea P0Tojctkcr0 Vdrjrcndnwzzckhustq6Qfdi Xkgjmvgj9G7 Oz4Mmrvffyqykgejrzrlvcsf8Anwnkwjodudxsagnikpodnsxb7Xxuqe2 Mrwwdvijsi53Ntdjj 2Oxong7 Idtzj0F Zfdgakrnfb0Mwptcvg

Genesis Global, a now-struggling cryptocurrency lender, reportedly hired Moelis & Company, an investment bank, to assist in exploring their options for their current predicament, which may include bankruptcy.

Since the process in question was deemed to be confidential, the sources of this information have chosen to remain anonymous. Nevertheless, they have made it clear that no final decisions have been made and that the possibility of the company avoiding bankruptcy filing is still on the table.

The cryptocurrency lending platform Genesis has previously hired experts to address a liquidity crisis, including the consulting firm Alvarez & Marsal and the law firm Cleary Gottlieb. Genesis’ decision to do so is not new.

Since the fall of the FTX empire, Genesis, which is owned by the Digital Currency Group, has been under pressure from its creditors and has been going through a rough patch. Genesis and the defunct empire were trading partners, and when the exchange frozen accounts just before declaring bankruptcy this month, $175 million of Genesis’ assets were reportedly left on the platform. This suggests that Genesis and the defunct empire had a close relationship.

Barry Silbert, the founder and CEO of the Digital Currency Group, claimed in a letter that there was a problem with the Genesis loan book’s liquidity and duration mismatch. The Genesis spot and derivatives trading and custody businesses, which he highlighted as being operational as usual, are unaffected by the aforementioned issues, he continued.

Furthermore, he added that the Genesis’ executives and board members have already decided to work with financial and legal counsel as the business works to explore its options in the wake of FTX’s collapse.

MEXC Banner Ads - 300x250