Crypto Lender Genesis nu intenționează să depună faliment

• Genesis is facing a liquidity crunch after a torrent of withdrawals due to the FTX collapse.
• Genesis has had exposure to bankrupt firms – FTX and 3AC.

Creditor Crypto Geneză turned up to clearly state that they have no intention to immediately file for bankruptcy. The Grupul valutar digital-owned brokerage declared this through an email statement, as reported by Bloomberg. Genesis opts to do outreach to investors and clients seeking credits for recovery.

Genesis spokesperson stated:

„Nu avem de gând să depunem faliment iminent. Scopul nostru este să rezolvăm situația actuală în mod consensual, fără a fi nevoie de nicio declarație de faliment. Genesis continuă să aibă conversații constructive cu creditorii.”

The crypto brokerage firm failed in its attempt of raising a $1 billion emergency credit from investors. As a result, Genesis Global Trading halted withdrawals on its crypto lending unit. This troubling liquidity crunch is all caused by the Colapsul FTX. Following FTX’s filing for bankruptcy, the elevated panic triggered the initiation of rapid withdrawals on Genesis’s crypto lending unit. 

Crisis Ensued From FTX Collapse

Evidently, the current trouble of Genesis is due to its exposure to insolvent crypto firms – FTX and the ex-crypto hedge fund group Three Arrows Capital (3AC). Notably, Genesis held nearly $175 million worth of funds in its trading account on FTX. Moreover, it has also lent over $2.36 billion to 3AC. This investment and debt sanction invited the threats of insolvency to the doors of Genesis. 

In its redemption mission, Genesis, as reported by The Wall Street Journal and Bloomberg, has sent a request to the largest crypto trading exchange Binance for a bailout. As of now, Binance has not confirmed this. Also, WSJ reported that the crypto lender approached the NY-based equity behemoth Apollo Global Management for help.

The aftermath of the FTX collapse is on the trajectory of initiating crypto devastation that has begun engulfing billions of dollars from the market. Regrettably, several crypto firms are on might file for bankruptcy.