Genesis Says It Has No Immediate Plans To Declare Bankruptcy, Seeks Consensual Resolution

Dhirendra Kumar
November 22, 2022 Updated May 20, 2025
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Genesis

Genesis, a digital asset financial services company, has denied that it is on the verge of declaring bankruptcy, just days after halting withdrawals in response to the collapse of crypto exchange FTX.

On Monday (November 21), the cryptocurrency lender stated that it has “no plans” to file for bankruptcy in the near future and will seek a “consensual” resolution to the situation.

In an emailed statement to Reuters, a Genesis spokesperson said, “We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing.”

According to a report by Bloomberg News, citing sources, Genesis was facing difficulty raising new capital for its lending unit and has warned investors that it may file for bankruptcy if additional funding were not secured.

genesis

According to reports, the crypto investment bank has spent the past several days attempting to raise at least $1 billion in new capital.

Furthermore, the Wall Street Journal reported that Genesis approached crypto exchange Binance in pursuit of an investment, but Binance declined due to a potential conflict of interest down the road.

According to reports, the company also approached private equity firm Apollo Global Management for funding.

Genesis Global Capital, one of the largest crypto lenders, suspended customer withdrawals last week due to a liquidity shortage triggered by a rise in withdrawal requests following the collapse of Sam Bankman-Fried’s FTX.

Gemini’s Stance

Gemini, which operates a crypto lending product in partnership with Genesis, tweeted on Monday that it was continuing to collaborate with the firm to help its consumers redeem funds from its yield-generating “Earn” programme.

Gemini stated on its blog last week that the suspension of Genesis withdrawals had no effect on its other products and services.

Also Read: Is FTX Crash An End Of Crypto? Here’s How A Multi Billion Dollar Scam Unfolded

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Dhirendra is a writer, producer, and journalist who has worked in the media industry for more than 3 years. A technology enthusiast, a curious person who loves to research and know about things. When he is not working, you can find him reading and understanding the world through the lens of the Internet.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.