Genesis rejects bankruptcy plans
Terrill Dicki Nov 22, 2022 04:57
Genesis, a cryptocurrency loan startup, has denied reports that it is contemplating a "imminent" bankruptcy case. According to reports, the company had difficulty acquiring funds for its lending section and informed investors that it would have to declare bankruptcy. Genesis said on November 16 that withdrawals had been temporarily halted due to "unprecedented market turmoil" after FTX's demise.
People had the impression that Genesis, a company that lends out cryptocurrencies, intended to file for bankruptcy "imminently" if it was unable to pay a deficit of $1 billion brought on by the collapse of the cryptocurrency exchange FTX. This deficit was caused by the collapse of FTX, which was a company that traded cryptocurrencies. After FTX went bankrupt, Genesis ran into financial difficulties and was unable to meet its obligations, which led to the accumulation of this deficit. This void was brought about as a direct consequence of the collapse of FTX. On the other hand, this is not the case, since the book of Genesis makes it quite clear throughout its text. On November 21, people who are familiar with the matter told Bloomberg that the company had problems collecting money for its lending section and that it advised investors that it would have to file for bankruptcy if the situation did not improve. Additionally, people who are familiar with the matter said that the company warned investors that it would have to file for bankruptcy if the situation did not improve. Furthermore, according to those who are aware with the issue, the business reportedly informed investors that it would have to file for bankruptcy if the situation did not improve.
Genesis has been in "imminently" conversations with its creditors, as suggested by a spokeswoman for the business, and the company does not have any "constructive" intentions to file for bankruptcy, as revealed by the spokeswoman for the company.
After the collapse of FTX on November 16, Genesis said that it has temporarily halted withdrawals of funds from its customers' accounts. The business said that the temporary halt on withdrawals was necessary due to "unprecedented market turmoil" as the basis for the decision.
The company's most recent statement, which was issued on November 10 and indicated that it had around 175 million dollars worth of cash locked in an FTX trading account, was made on that day.
According to some reports, the cryptocurrency exchange Binance is said to have been in discussions to perhaps save a lender that is controlled by Digital Currency Group. Binance is claimed to have apparently been in negotiations. According to the sources that were quoted in an article that was published by the Wall Street Journal on November 21, Binance reportedly made the decision not to complete the purchase because doing so would have led to a conflict of interest. This was stated by the sources that were mentioned in the article that was published.
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