Genesis will go bankrupt without new capital

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HOT: Cryptocurrency lending giant Genesis Global suspends withdrawals

Genesis has yet to receive a significant investment to recover from the crash of FTX and is currently considering bankruptcy.

Genesis, the cryptocurrency brokerage platform has Freeze withdrawals last week, maybe bankrupt if not raise money from investors.

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As reported by BNN Bloomberg, in the past few days, Genesis is trying to mobilize 1 billion dollars from investors.

A report by the Wall Street Journal claims that Genesis has unsuccessful in its fundraising efforts.

Bloomberg claims that Genesis is Negotiate with Binance to have an investment, but the funding is still "still not a reality."

“We have no immediate plans to file for bankruptcy,” a Genesis representative said. “Our goal is to resolve the current situation without filing for bankruptcy. Genesis continues to have constructive negotiations with its creditors.”

Genesis' lending division froze buybacks last week after another division of the company revealed it had lost 175 million dollars in FTX.

FTX now faces more debt 8 billion dollars, including retail customers, organizations and even celebrities.

The incident caused other companies to suspend withdrawals as well, including BlockFi and Liquid.

Digital Currency Corporation (DCG), the parent company of Genesis, provided the broker with $144 million in equity on the day of FTX's bankruptcy to help resolve the liquidity problem.


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