Genesis requires at least $500 million, but Apollo and Binance said they won’t invest in the lender at this time.

  

Summary:
Genesis wanted to raise $500 million – 1 billion to wardoff bankruptcy concerns. However, both Binance and Apollo turned down the opportunity to finance Genesis’ efforts to raise capital. After declaring a $175 million exposure for the beleaguered digital asset exchange FTX, Genesis, a major crypto lender, could go bankrupt. Bloomberg reports that the crypto lender sought $1 billion from investors. The raise was subsequently reduced to 500 million.
Although the firm did not announce any immediate plans to file bankruptcy, investors were informed that urgent cash was required.
Raise Binance and Apollo Shun Genesis
To help ensure the balance sheet, potential investors were sought out by Binance and Apollo. Changpeng Zhao’s Binance stated that it would not invest in the crypto lender, citing “a conflict” of interest. Binance also decided to withdraw its consent from acquiring FTX, after thorough due diligence.
Apollo was also unlikely to provide Genesis with cash, but the firm didn’t disclose the reasons at press time.

[DB] Apollo Said It Was Unlikely to Participate In Genesis Fundraising: BBG – db (@tier10k), November 22, 2022
After surviving 3AC, Genesis is close to bankruptcy
Ethereum World News reported previously that Genesis had suspended withdrawals and new loan originations after declaring frozen funds on FTX. After the news, Gemini’s Earn program was also halted.
Genesis was exposed to the insolvent hedge fund Three Arrows Capital before the fallout from Sam Bankman Fried’s crypto exchange. After 3AC exposure, some employees were laid off by the crypto lender and Michael Moro was appointed CEO.
One of many firms that were affected by FTX’s fall is the crypto lender. Companies such as Voyager and BlockFi – which received loans from FTX in the wake of 3AC falling – could also be underwater.
FTX bankruptcy proceedings are ongoing at press time. Reports indicate that more than 1 million creditors could file claims. According to documents submitted to bankruptcy court, the crypto exchange had approximately $2 billion in cash and assets. Bloomberg and WSJ reported that the hole was $6 billion.