Crypto lender Genesis says it has no immediate plans to file for bankruptcy

Nov 21 (Reuters) – Cryptocurrency lender Genesis said on Monday it had no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX l forced to suspend customer refunds.

“We do not intend to file for bankruptcy imminently. Our goal is to resolve the current situation on a consensual basis without the need for a bankruptcy filing,” a Genesis spokesperson said in a statement. emailed to Reuters, adding that he was continuing to have conversations with creditors.

A Bloomberg News report, citing sources, said Genesis was struggling to raise fresh funding for its loan unit and warned investors it may have to file for bankruptcy if it cannot find funding.

Additionally, The Wall Street Journal reported, citing sources, that the company approached crypto exchange Binance seeking investment, but Binance decided against it, fearing a potential conflict of interest. .

Genesis has also approached private equity firm Apollo Global Management (APO.N) for capital assistance, according to the report.

Apollo did not immediately respond to a request for comment from Reuters on the WSJ report, while Binance declined to comment.

Last week, Genesis Global Capital suspended client redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s FTX crypto exchange.

Crypto exchange Gemini, which runs a crypto lending product in partnership with Genesis, tweeted on Monday that it continues to work with the company to allow its users to recover funds from its yield-generating “Earn” programs. .

In a statement on its blog last week, Gemini said there was no impact to its other products and services after Genesis suspended withdrawals.

On Thursday, The Wall Street Journal reported that Genesis had sought a $1 billion emergency loan from investors before suspending withdrawals.

Earlier this month, FTX filed for bankruptcy protection in the United States in the most publicized crypto explosion to date, after traders withdrew billions from the platform in three weeks. days and rival exchange Binance dropped a bailout deal.

Reporting by Manya Saini and Lavanya Sushil Ahire in Bengaluru; Additional reporting by Rishabh Jaiswal; Editing by Sriraj Kalluvila, Rashmi Aich and Sam Holmes

Our standards: The Thomson Reuters Trust Principles.

.

Leave a Comment

Your email address will not be published. Required fields are marked *