Crypto Firm Genesis Says It Has No Plans To File Bankruptcy Imminently
Africa Business Radio
00:01:46
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Africa Tech News
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Genesis, a digital assets financial services firm, may be in hot water as it looks to raise fresh capital for its lending unit or potentially face bankruptcy if it can’t.
A Genesis spokesperson says their goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.
Sources shared that Genesis cut its capital raise target by 50% from $1 billion to $500 million, as it may face bankruptcy without the funding.
Genesis was facing a liquidity crisis after FTX collapsed, which created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.
The firm decided to temporarily suspend redemptions and new loan originations in the lending business.
A Genesis spokesperson says their goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.
Sources shared that Genesis cut its capital raise target by 50% from $1 billion to $500 million, as it may face bankruptcy without the funding.
Genesis was facing a liquidity crisis after FTX collapsed, which created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.
The firm decided to temporarily suspend redemptions and new loan originations in the lending business.