Binance rejects any investment to save the crypto lending company “Genesis” … details here
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Answer Binance rejects any investment to save the crypto lending company “Genesis” … details here
Cryptocurrency broker Genesis Trading is struggling to raise fresh capital at the moment.
According to the latest report from the WSJ, the cryptocurrency lending company has also approached several leading crypto firms such as Binance and Apollo Global Management to obtain financing or purchase the company’s loan book.
Sources familiar with the matter said that Binance has decided not to invest in Genesis at this point.
According to the same sources, Binance believes that some of Genesis’ businesses may create conflicts of interest in the future.
Over the past few days, Genesis plans to raise $1 billion in new capital.
Read:An investment fund that made $1.1 billion in bitcoin in just five months!
The reason behind this new funding is that the cryptocurrency lending company is facing a huge liquidity crisis amid huge withdrawals on the platform.
On November 10, Genesis halted refunds saying it had $175 million locked in an FTX trading account.
Genesis’ troubles began earlier this year with the collapse of 3AC.
Digital Currency Group, the parent company of Genesis Global, is claiming $1.2 billion back in the hedge fund.
He also told a few sources that Genesis has cut its fundraising goal by 50% from $1 billion to $500 million now.
Genesis clarifies: There are no plans to go bankrupt
Commenting on current developments, a Genesis spokesperson said they have no imminent plans to file for bankruptcy.
The spokesperson added:
We have no plans to file for bankruptcy. Our goal is to resolve the current situation by mutual consent without the need for any bankruptcy filing. Genesis continues to have constructive talks with creditors.
As mentioned in several previous articles, the collapse of the FTX cryptocurrency exchange had far-reaching consequences for the cryptocurrency sector.
Read:Bitcoin Drops Below $50K Level Cryptocurrency Tezos Rises 30% After Ubisoft News
The recent developments at Genesis have also resulted in cryptocurrency exchange Gemini discontinuing its loan program for the time being.
This is because Genesis is the lending partner for the Gemini trading platform’s Earn program.
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