Investing.com – Crypto broker Genesis is struggling to raise money for its lending arm. writes Bloomberg, citing informed sources. The company warned investors that if it went bust, it could file for bankruptcy, they said.
Genesis has been trying to raise at least $1 billion in new capital in recent days, sources said. The company is in talks with cryptocurrency exchange Binance, but has yet to receive further investment, Bloomberg noted.
Genesis began actively seeking funding after the liquidity crisis caused by the collapse of cryptocurrency exchange FTX. On November 16, the broker suspended withdrawals on its platform as it could not meet the demands of customers who started withdrawing money abruptly. Earlier, Genesis revealed that $175 million had been blocked in its FTX trading account.
“We have no plans to file for bankruptcy any time soon. Our goal is to resolve the current situation by consensus without filing for bankruptcy. Genesis continues to engage in constructive negotiations with creditors,” a company spokesperson told Bloomberg.
The price fell to a two-year low, reaching $15,480 on Bloomberg’s publication of a possible Genesis bankruptcy, Coindesk reports.
Follow our news on social networks: Telegram, “In touch with” And “Odnoklassniki”.
Text prepared by Timur Aliev
