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Crypto lender Genesis says no plans to file bankruptcy imminently

Nov 21 (Reuters) – Cryptocurrency lender Genesis said on Monday it had no plans to file for bankruptcy anytime soon, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions.

“We have no plans to file for bankruptcy immediately. Our goal is to resolve the current situation in consensus without the need for any bankruptcy filing,” the firm told Reuters in an emailed statement, adding that he is still in discussions with creditors.

A Bloomberg News report, citing sources, said on Monday that Genesis was struggling to raise fresh cash for its lending unit, and warned investors that it may have to file for bankruptcy if it doesn’t get financing.

Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s crypto exchange FTX.

The Wall Street Journal reported Thursday that Genesis sought a $1 billion emergency loan from investors before suspending withdrawals.

Earlier this month, FTX filed for US bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a bailout deal.

Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

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