Crypto

Crypto lender Genesis says it has no plans to file for imminent bankruptcy

Nov 21 (Reuters) – Cryptocurrency lender Genesis said on Monday it did not plan to file for bankruptcy imminently, days after the collapse of crypto exchange FTX forced it to close. suspend customer redemptions.

“We do not intend to file for bankruptcy imminently. Our goal is to resolve the current situation in a consensual manner without the need for a bankruptcy filing,” the company said in an emailed statement. email to Reuters, adding that she continues to have conversations with creditors.

A report Bloomberg News, citing sources, said on Monday that Genesis was struggling to raise fresh funding for its loan unit, and warned investors that it may have to file for bankruptcy if it does not find funding.

Last week, Genesis Global Capital suspended client redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s FTX crypto exchange.

On Thursday, The Wall Street Journal reported that Genesis had sought a $1 billion emergency loan from investors before suspending withdrawals.

Earlier this month, FTX filed for bankruptcy protection in the United States in the most publicized crypto explosion to date, after traders withdrew billions from the platform in three days and rival exchange Binance dropped a bailout deal.

Reporting by Manya Saini in Bangalore; Editing by Sriraj Kalluvila

Our standards: The Thomson Reuters Trust Principles.

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