Genesis, a cryptocurrency lender, said on Monday that it has no plans to file for bankruptcy anytime soon, just days after the collapse of cryptocurrency exchange FTX forced it to suspend customer redemptions.
In an email sent to Reuters, the firm stated:
“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing.”
Genesis’ Fundraising Difficulties
According to Bloomberg, Genesis, a company with offices in New York City, London, and Singapore, has been having difficulty raising funds for its lending unit and has warned investors that it may go bankrupt if it does not receive additional funding.
According to the report, the crypto investment bank has spent the last few days trying to raise at least $1 billion in new capital from investors.
According to individuals with knowledge of the situation, Genesis approached cryptocurrency exchange Binance about investing, but Binance declined due to concerns about a conflict of interest.
According to the Wall Street Journal, Genesis also approached Apollo Global Management, a private equity firm, for funding.
Sam Bankman-Fried’s Regret and FTX Investors’ Lawsuit
Sam Bankman-Fried, the founder of FTX and former CEO who resigned earlier this month, spoke with Vox last week, expressing regret over the company’s bankruptcy filing and blaming regulators for failing to protect customers.
Investors are suing Bankman-Fried and some influencers for $11 billion in an FTX class action lawsuit.
According to reports, the US Department of Justice and the Securities and Exchange Commission (SEC) are investigating possible securities law violations by Bankman-Fried and his company.
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