The situation of Genesis, in serious difficulty since the declaration of bankruptcy of FTX, continues to worry. The cryptocurrency company has still failed to find financial help from its partners as it seeks to raise a billion dollars for its survival. Consequently, its creditors are organizing to avoid potential bankruptcy.
The situation of Genesis worries
We told you recently, the Genesis company, which belongs to the Digital Currency Group consortium (which notably owns the CoinDesk media), is on the verge of bankruptcy. And for good reason, the collapse of FTX triggered a liquidity crisis within the company, which had somehow tried to minimize the impact of the latter on the public.
According to information reported by Bloomberg, various creditors of Genesis are currently working with lawyers who specialize in restructuring cases to find a way out and try to ward off the bankruptcy of the cryptocurrency broker.
The creditors concerned would currently be divided into 2 groups, one advised by the law firm Proskauer Rose and the other by the law firm Kirkland & Ellis. Little known in France, these 2 firms are among the most influential in the United States.
The various entities would thus seek to limit the “domino effect” initiated by the fall of FTX. It is desirable for the ecosystem that Genesis finds a solution insofar as the company is currently seeing $2.8 billion in outstanding loans in its balance sheet, including within the Digital Currency Group.
Thus, if it were to declare bankruptcy, this could greatly accelerate the fall of many players in the ecosystem concerned by these financial loans.
Last I heard, Genesis was trying to raise $1 billion from its various partners in order to stay afloat. However, these efforts have so far proved unsuccessful, and bankruptcy would be the only way out if no solution were ever found.
Despite the recent launch of its relief fund, which already totals more than $2 billion, the Binance platform did not wish to participate in the joint effort regarding Genesis.
👉 Read also – FTX: a new audio recording by Sam Bankman-Fried turns out to be a bad omen
The platform that simplifies trading
Buy crypto in minutes
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
488 items
