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Another Bankruptcy in Crypto Industry? Genesis Warns Bankruptcy!

Key Takeaways

  •  As per recent reports, Genesis, a significant subsidiary of Digital Currency Group, is finding it difficult to raise sufficient funds for the streamlined operation of its lending unit. 

  • The liquidity crunch in this crypto lending platform severed after the sudden collapse of FTX, one of the world’s largest centralized crypto exchanges.

  • The crypto lending platform made it clear that its statement about Bankruptcy shouldn't be seen as its next step but as a mere possibility.



22-Nov-2022 By: Shailja Joshi
Another Bankruptcy i

The bearish sentiment in the crypto market continued with a 

leading crypto lending platform warning the customers about its liquidity crisis. 

As per recent reports, Genesis, a significant subsidiary of Digital Currency Group, is finding it difficult to raise sufficient funds for the streamlined operation of its lending unit. 

Why Did Genesis Warned Bankruptcy?

As per the trusted sources within the industry, Genesis has been looking out for $1 billion in fresh funds to continue its operation. However, it has not been able to raise the amount within time and reduced the target to $500 million. The liquidity crunch in this crypto lending platform severed after the sudden collapse of FTX, one of the world’s largest centralized crypto exchanges. As per the official statements of Genesis, it had over $175 million worth of cryptocurrencies in FTX and there is no way out for them right now. 

Genesis was also in talks with Binance for raising the required liquidity but none of these attempts succeeded. With the failed attempts to raise funds and increasing pressure from its halted withdrawals, Genesis had to warn the market that it might consider filing for bankruptcy to resolve customer holdings.

Another Bankruptcy in Crypto Space?

No, not as per the official statement made by Genesis. The crypto lending platform made it clear that its statement about Bankruptcy shouldn't be seen as its next step but as a mere possibility. Genesis said that it is in talks with prominent investors and working towards ‘resolving the current situations consensually without the need for a bankruptcy filing.’ As per the reports, Genesis has also reached out to other crypto billionaires, Winklevoss twins Tyler and Cameron, owners of Geminin Exchange. 

All the attempts of raising funds from Gemini are under high scrutiny from the stakeholders and CoinGabbar is keeping a keen eye on further updates on the story. To get the latest updates on crypto news and read such information pieces, visit CoinGabbar.com and get exclusive content for free.

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