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Genesis denies there are “imminent” plans to file for bankruptcy

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Cryptocurrency lending company Genesis has refuted speculation that it plans to declare “imminent” bankruptcy if it fails to cover a $1 billion shortfall caused by the fall of cryptocurrency exchange FTX.

The company reportedly had difficulties raising money for its lending unit and told investors it would have to file for bankruptcy, according to a Bloomberg post on Nov. 21. Report Citing people familiar with the matter.

A Genesis spokesperson told Cointelegraph that there are no plans to file for “imminent” bankruptcy and that it has continued to have “constructive” discussions with creditors.

“We have no plans to file for imminent bankruptcy. Our goal is to resolve the current situation by mutual consent without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

On November 16, Genesis announced that it had done so Temporarily suspended withdrawals Citing “unprecedented market turmoil” after the FTX crash. The company revealed earlier on November 10 that it was About $175 million The value of funds outstanding in an FTX trading account.

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Related: FTX Contagion: Which Companies Have Been Affected by the FTX Crash?

Reports also indicated that cryptocurrency exchange Binance was in talks to bail out the lender owned by Digital Currency Group, but sources were quoted on November 21. Report The Wall Street Journal claimed that Binance pulled out of the deal because the business could create a conflict of interest.

Cointelegraph reached out to Binance for clarification, but did not immediately receive a response.