Recent reports indicate that Genesis Global Capital has hired a restructuring consultant to consider all possible outcomes for the company, including but not limited to the possibility of filing for bankruptcy.

According to a November 22 New York Times report, the company is known to have recruited investment banking firm Moelis & Company to investigate possible actions.

People familiar with the situation confirmed that no financial decisions had been made and that it was still possible for the company to avoid filing for bankruptcy.

It is interesting to note that Moelis & Company was also one of the companies hired by Voyager Digital after the company temporarily halted withdrawals and deposits on July 1 in order to investigate strategic alternatives.

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A few days later, Voyager Digital filed for Chapter 11 bankruptcy with the Southern District of New York.

This was part of a plan to restructure the company so that customers would get their money back.

But a Genesis spokeswoman said not long ago that the company had no plans to file for bankruptcy, despite a Nov. 21 article from Bloomberg saying otherwise.

As stated in a Bloomberg report, the financially distressed lending company has outstanding loans totaling $2.8 billion on its balance sheet.

Approximately thirty percent of the company’s lending is provided to related parties which include parent company Digital Currency Group, its subsidiary and lender Genesis Global Trading.

In a recently circulated letter, Barry Silbert, CEO of the cryptocurrency group, claimed that the company owes Genesis Global Capital $575 million, and that payment is due in May 2023.

Since the collapse of FTX on November 11th, all attention has focused on Genesis, Grayscale Investments and their parent company, Digital Currency Group.

People fear that these companies will be the next to fail due to the tide and impact of the FTX meltdown.

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Over the past week, all three companies have made efforts to allay their investors’ concerns.

In a tweet sent on November 17, Grayscale Investments reassured investors that the integrity and security of the holdings underlying Grayscale digital asset products has not been affected.

The tweet was a reference to the withdrawal halt implemented by Genesis Global Trading and added that the company’s products are still operating normally.

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