Genesis, a digital assets financial services firm, may be in hot water as it looks to raise fresh capital for its lending unit or potentially face bankruptcy if it can’t, according to a report by Bloomberg.
Genesis was facing a liquidity crisis after FTX collapsed, which “created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity,” it shared in a series of Tweets last Wednesday.
“We have no plans to file bankruptcy imminently,” a Genesis spokesperson said in an emailed statement to TechCrunch on Monday. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”
According to The Block, sources shared that Genesis cut its capital raise target 50% from $1 billion to $500 million as it may face bankruptcy without the funding.
This story is developing and may be updated as new information arises.