After FTX, Genesis crypto exchange may go bankrupt if it fails to find $1 billion

November 22, 2022  18:45

Shortly after the collapse of cryptocurrency exchange FTX, cryptocurrency lending company Genesis may also go bankrupt. The company has now suspended payments to customers and is seeking a $1 billion emergency loan.

At the same time, potential investors are being warned that if the necessary money is not found, the company may have to declare bankruptcy.

Earlier, Genesis management turned to Apollo Global Management and cryptocurrency market leader Binance for help. The latter, according to media reports, refused to invest in Genesis because of a possible conflict of interest with the company's business model.

The FTX bankruptcy had a serious impact on the entire crypto market, as many companies ran into problems after they were asked to repay loans and users began withdrawing their currencies en masse. Genesis also faced a liquidity problem. The company is in no hurry to declare bankruptcy just yet.

"We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing․ Genesis continues to negotiate constructively with creditors,”- a Genesis spokesperson said. 

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