Genesis is meeting with creditors and restructuring lawyers to avoid bankruptcy.
The collapse of FTX continues to contaminate the crypto industry. In particular, investment asset management companies faced liquidity problems. One of them was Genesis. Crypto lending platform Genesis Global Capital stopped withdrawals on November 16 and began looking for new sources of liquidity. Later, crypto company Genesis announced that it would go bankrupt if it could not find funds.
Genesis Holds Negotiations to Avoid Bankruptcy
US crypto firm Genesis said it was trying to avoid bankruptcy after the firm reported that its creditors were organizing with restructuring lawyers to avoid bankruptcy.
According to the news in Bloomberg, law firms Proskauer Rose and Kirkland & Ellis were consulted by groups of creditors who wanted to avoid a situation similar to the rapid descent of crypto exchange FTX towards bankruptcy.
“Our goal is to resolve the current situation in the lending business without the need for any bankruptcy filings,” a Genesis spokesperson said.
As reported in the news, Derar Islim, interim CEO of Genesis, said:
“We have started discussions with our largest creditors and borrowers, including potential investors, Gemini and DCG, to agree on a solution that supports the overall liquidity of our loan business and meets customers’ needs.”
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