Genesis Trading, a crypto brokerage firm, is having major difficulties raising capital during its current financial crisis. According to the latest WSJ report the crypto lender approached players such as Binance and Apollo Global Management in order to bid for its loan books. Sources familiar with the matter claim that Binance has not decided to bid.
The post Binance Refuses Any Investment to Save Crypto Lender Genesis. Bankruptcy Ahead CoinGape was first to publish this article.

  

Genesis Trading, a crypto brokerage firm, is having major difficulties raising capital during its current financial crisis. According to the latest WSJ report the crypto lender approached players such as Binance and Apollo Global Management in order to bid for its loan books.
Sources close to the matter say that Binance decided not invest in Genesis at this time. According to sources, Binance believes that Genesis’s businesses could create a conflict in the future.
Genesis has been planning to raise $1Billion in new capital over the past few days. The reason for this new funding is that Genesis is facing a liquidity crunch due to massive withdrawals from the platform. Genesis stopped redemptions on November 10th, stating that it had $175,000,000 in an FTX trading accounts.
The collapse of Three Arrows Capital (3AC) earlier this year was the start of genesis’s problems. Digital Currency Group, the parent company to Genesis Global, holds a $1.2 Billion claim against the hedge fund. The Block was also informed by a few sources that Genesis has decreased its fundraising target from $1 billion to $500 million.
Genesis – No Imminent Bankruptcy Plans
A Genesis spokesperson stated that they do not have any plans to file for bankruptcy. The spokesperson said:
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“We don’t plan to file bankruptcy soon. Our goal is to resolve the present situation consensually, without the need to file bankruptcy. Genesis continues to have constructive discussions with creditors.”
As you can see, the fall of crypto exchange FTX had far-reaching effects on the crypto sector. Gemini’s Earn Program was also halted due to recent developments at Genesis. Because Genesis is the lending partner for the Earn Program, this is why.

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Gemini stated in a recent update that they are working closely to Genesis and Digital Currency Group. “This remains our highest priority, and we understand that Genesis and DCG remain committed in exploring every option to fulfill their obligations towards Earn users,” they said.
What if Genesis is the next to fall following FTX? This could cause a huge correction in crypto space, and could even be worse than the FTX episode.

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