Genesis’ comments come days after it halted customer withdrawals due to liquidity issues.

Cryptocurrency lender Genesis has denied it is on the brink of bankruptcy, days after halting withdrawals in response to the collapse of crypto exchange FTX.

Genesis said Monday it has “no plans” to file for bankruptcy in the near future and will try to resolve the situation “by mutual consent”.

“We do not plan to go out of business any time soon,” a spokesperson said in an emailed statement to Al Jazeera. “Our goal is to resolve the current situation consensually without the need for a bankruptcy filing. Genesis continues to engage in constructive discussions with creditors.”

Bloomberg News previously reported that Genesis, which has offices in New York City, London and Singapore, was struggling to raise new money for its lending unit and had warned investors it could file for bankruptcy if it didn’t get additional funding.

The report, citing people familiar with the matter, said the crypto investment bank has been trying to raise at least $1 billion in new capital in recent days.

Genesis sought investment from crypto exchange Binance, but the latter declined the suggestion citing a conflict of interest, The Wall Street Journal reported Monday, citing people familiar with the matter.

Genesis also approached private equity firm Apollo Global Management for funding, according to the Wall Street Journal report.

Al Jazeera has reached out to Apollo and Binance for comment.

Genesis Global Capital, one of the largest crypto lenders, suspended customer withdrawals last week over what it said was a liquidity shortage due to a spike in withdrawal requests following the implosion of Sam Bankman-Fried’s FTX.

The collapse of FTXthe third-largest crypto exchange stunned the crypto industry earlier this month, sparking allegations of fraud and mismanagement, as well as comparisons to the 2008 collapse of Lehman Brothers.

In an interview with Vox last week, FTX founder Sam Bankman-Fried, who stepped down as CEO earlier this month, said he regretted his decision to file for bankruptcy protection and accused regulators of not protecting customers before he appeared to back down. run on some of his comments.

Bankman-Fried and several celebrities who promoted FTX are currently facing an $11 billion class action lawsuit from investors.

The U.S. Department of Justice and the Securities and Exchange Commission are also reportedly investigating whether Bankman-Fried or his company violated the securities law.

Source link

By wy9m6

Leave a Reply

Your email address will not be published. Required fields are marked *