Genesis denies ‘imminent’ plans to file for bankruptcy

Cryptocurrency lending firm Genesis has refuted hypothesis that it’s planning an “imminent” bankruptcy submitting ought to it fail to cowl a $1 billion shortfall brought on by the autumn of crypto alternate FTX.

The agency has reportedly confronted difficulties elevating cash for its lending unit and informed buyers it might have to file for bankruptcy, in accordance to a Nov. 21 Bloomberg report citing folks accustomed to the matter.

A spokesperson for Genesis informed Cointelegraph that there have been no plans to file for bankruptcy “imminently” and that it continued to have “constructive” discussions with collectors. 

“We don’t have any plans to file bankruptcy imminently. Our aim is to resolve the present scenario consensually with out the necessity for any bankruptcy submitting. Genesis continues to have constructive conversations with collectors.”

On Nov. 16, Genesis introduced it had briefly suspended withdrawals citing “unprecedented market turmoil” after FTX’s collapse. The firm beforehand revealed on Nov. 10 it had round $175 million value of funds caught in an FTX buying and selling account.

Related: The FTX contagion: Which corporations had been affected by the FTX collapse?

Reports have additionally instructed that crypto alternate Binance had been in talks to doubtlessly bail out the Digital Currency Group-owned lender, however sources quoted in a Nov. 21 report from The Wall Street Journal claimed Binance had walked away from the deal because the enterprise might create a battle of curiosity.

Cointelegraph contacted Binance for clarification on the matter however didn’t instantly obtain a response.