Genesis has disproved speculations that it is planning an imminent bankruptcy filing should it fail to cover a $1 billion shortfall caused by the fall of FTX.
The firm has reportedly faced difficulties raising money for its lending unit and told investors it would have to file for bankruptcy.
A spokesperson for Genesis stated that there were no plans to file for bankruptcy imminently and that it continued to have constructive discussions with creditors. Genesis announced it had temporarily suspended withdrawals citing unprecedented market turmoil after the FTX’s collapse on November 16th. The company previously revealed on Nov. 10 it had around $175 million worth of funds stuck in an FTX trading account.
Reports have also suggested that crypto exchange Binance had been in talks to potentially bail out the Digital Currency Group-owned lender but reports from The Wall Street Journal claimed Binance had walked away from the deal as the business could create a conflict of interest.
