Just-In: Binance’s CZ Might Acquire Genesis Loan Book

According to reports, CZ — the founder of the world’s biggest cryptocurrency exchange is interested in buying Genesis’ loan book. After showing interest in buying FTX but later backing out within 24 hours, Changpeng ‘CZ’ Zhao is said to be keen on acquiring Genesis’ loan book.

Genesis Halts Withdrawal Service

Reports suggest CZ has begun reaching out for more insights on the state of Genesis’ balance sheet as he might consider a potential bid for Genesis’ loan assets. In its Q3 2022 report, Genesis listed active loans worth $2.8 billion.

Read More: Genesis Suspends Customer Withdrawals In Wake Of FTX Collapse

Zhao’s statements on Twitter last week sparked the bank run that brought down FTX, which had a massive target on its back when it was discovered that its balance sheet was laughable and probably fraudulent.

The collapse of FTX has dealt a severe blow to the cryptocurrency industry, which has already been hit hard by a number of corporate failures this year. Be it the Axie Infinity hack, Terra LUNA debacle, 3AC liquidation, or Celsius bankruptcy — the crypto market has seen one of the worst times in 2022.

B2C2 Offers to Buy Loans From Genesis

Not just CZ, but even B2C2, the largest market maker in the industry has offered to purchase loans from the crypto financial firm Genesis. Max Boonen, the director and founder of B2C2, first tweeted about the offer as a way to “alleviate the current liquidity shortfall.”

Genesis revealed last week that the $175 million in locked funds in its FTX trading account belonged to its derivatives unit. In order to bolster Genesis’ balance sheet, DCG (parent company) decided to inject $140 million in additional shares.

The Ongoing FTX Drama

The FTX saga has sent the market into a frenzy and seems like there’s no stopping. Earlier, it was also reported that almost $1 billion in client deposits have gone missing from the bankrupt cryptocurrency exchange FTX, and it’s alleged that Bankman-Fried used a “backdoor” in FTX’s book-keeping system to siphon off money privately.

Due to the ongoing turmoil in the crypto market, not just Genesis, but many other organizations are expected to face the heat as well.