Genesis, a crypto firm providing services to institutions, is being hit with bankruptcy rumors following the news it had suspended redemptions due to exposure to the FTX failure.
Genesis is part of the Digital Currency Group – one of the most prominent conglomerates in the digital asset ecosystem.
Reuters reported that Genesis currently has no plans to file for Chapter 11, quoting a Genesis spokesperson:
“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing.”
Meanwhile, other reports indicate that Genesis is scrambling to raise more money while cautioning its investors it could be backed into a corner.
Genesis is said to have approached Binance for help, as well as Apollo Global.
Earlier this month, Genesis stated that its derivatives business has approximately $175 million in locked funds in their FTX trading account while claiming this “does not impact our market-making activities.”
A later series of Tweets last week made by Genesis stated:
“We have hired the best advisors in the industry to explore all possible options. Next week, we will deliver a plan for the lending business. We’re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity.”