Crypto brokerage Genesis is struggling to raise new funds for its lending unit and has warned potential investors that it may need to file for bankruptcy, while Binance turned down the request for investment.
Genesis has spent the past few days looking for at least $1 billion in new capital, but the company has decided to reduce its goal to $500 million due to the lack of success in its search.
This included conversations concerning the possibility of investments from the cryptocurrency exchange Binance. There were rumors circulating late last week that CZ, the CEO of Binance, was considering purchasing Genesis’ loan book.
According to reports, Binance decided not to invest because it was concerned that some of Genesis’s business might create a conflict of interest down the road.
Additionally, Genesis reached out to Apollo Global Management, which is a private equity business.
Despite the fact that it was forced to suspend customer redemptions due to the collapse of FTX, the cryptocurrency lender has stated that it does not currently have any immediate plans to declare bankruptcy.
We do not anticipate the need to seek bankruptcy protection in the near future. Our objective is to reach a mutually agreeable resolution to the predicament at hand so that no bankruptcy proceeding is required. According to a spokesperson for Genesis, the company is continuing to have productive negotiations with its creditors.
Compiled by Coinbold