Genesis Global Capital, the cryptocurrency lender, took over the investment bank Moelis & Company to explore options including a potential failure.
Three people familiar with the situation said so, according to reports from the New York Times. genesis is found with 175 million dollars of your blocked activities on the FTX platform. The people, who requested anonymity because the trial is confidential, stressed that no final decisions have been made and that it is still possible for the company to avoid filing for bankruptcy.
genesis she had previously confirmed that she had hired counselors to help her deal with one liquidity crisis, including the consulting firm Alvarez & Marsal and the law firm Cleary Gottlieb. moelis advised cryptocurrency lender Voyager Digital when it filed for bankruptcy last July. “Our goal is to resolve the current situation without the need to file for bankruptcy,” a Genesis spokesman said, declining to comment on whether he hired additional advisers, the NYT reported.
Assets locked up in FTX bankruptcy for $175 million
genesis, which is owned by the Digital Currency Group, has come under pressure from its creditors since the cryptocurrency exchange FTX it began to crumble this month. Genesis was a business partner of FTX and claimed that 175 million dollars of his activities were blocked at FTX when the exchange froze accounts shortly before declare bankruptcy this month. The platform had gone to great lengths to raise liquidity to avoid collapse after i trader they had hurried to withdraw 6 billion of dollars from the platform in sole 72 ore.
Il collapse of FTX it has raised concerns of a contagion effect on other companies that were already trying to recover from the decline in the cryptocurrency market this year. Since the beginning of the year that of Ftx represents the third collapse since crypto world after the crush of the stablecoin EARTH in May and the bankruptcy of the cryptocurrency lending company Celsius, which had nearly 1,8 million users, in July.
Genesis grappling with accounting book deadlines
“This is a problem of discrepancy di liquidity and duration of the genesis funding book“he said on Tuesday afternoon Barry Silbert, founder and chief executive officer of Digital Currency Group, in a letter to clients. “Importantly, these issues have no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual,” he added: “Genesis leadership and their board have decided to hire financial and legal advisors and the company is exploring all possible options regarding the consequences of the implosion of FTX”. Last week, genesis he informed his customers that he was stopping withdrawals due to liquidity problems. At the end of the third quarter, Genesis had $2,8 billion in outstanding loans, according to the lender's quarterly statement.
The key role of the rival Changpeng Zhao
According to other sources Genesis Global Trading also addressed Binance, but the largest cryptocurrency exchange founded and led by Chinese Changpeng Zhao, called in slang CZ. However, he denied the aid due to a potential conflict of interest. In recent weeks CZ had offered to lend a hand to Ftx, but after looking at the company's accounts he had withdrawn. After which FTX founder Sam Bankman-Fried had to ask for Chater 11, the US formula for assisted bankruptcy.
