NewsletterGenesis Says It Has No Immediate Plans To Declare Bankruptcy, Seeks Consensual Resolution
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.
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.
1/5 Update for Earn customers: we continue to work with Genesis Global Capital, LLC (Genesis) — the lending partner of Earn — and its parent company Digital Currency Group, Inc. (DCG) to find a solution for Earn users to redeem their funds.
— Gemini (@Gemini) November 22, 2022
Also Read: Is FTX Crash An End Of Crypto? Here’s How A Multi Billion Dollar Scam Unfolded
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- WhiteBIT Enters U.S. Market, Unveils High-Impact Times Square Campaign
- “Forget the 4-Year Cycle” Grayscale Says, Projects 2026 as Bitcoin’s Breakout Year
- US FED Injects $13.5B in Liquidity Overnight as QT Ends, Bitcoin & MSTR Stock React
- Trump-Backed Alt5 Sigma Under Fire for Possible SEC Rule Violations, New Report Reveals
- Just-In: Spot Solana ETF Records Largest Outflow While XRP ETFs Nets $90M
- Ethereum Price Prediction: ETF Outflows Hit $79M as Institutional Accumulation Surges
- Pump Coin Price Soars as New Whale Accumulates $23.5M Amid Market Dip
- XRP Price Prediction as Ripple Gets MAS Licence in Singapore
- Ethereum Price Crashes Below $3,000 as $500M Longs Liquidated: What’s Next?
- Pi Network Price Prediction Ahead of December’s 190M Scheduled Unlock
- Dogecoin Price Below $0.15 as Crypto Market Crashes: Will $0.10 Hold?
