Troubled crypto lender Genesis Global Capital has hired investment bank Moelis & Company to explore options, including a potential bankruptcy, three people with knowledge of the matter said, WSJ reported.
“Genesis Still Has a Chance of Surviving Bankruptcy”
These people, who did not want their names to be disclosed because the process is confidential, emphasized that no final decision has been made and that it is still possible for the company to avoid filing for bankruptcy.
Genesis has previously confirmed that it is bringing in advisors, including consulting firm Alvarez & Marsal and law firm Cleary Gottlieb, to help clear the liquidity crunch.
Moelis advised crypto lender Voyager Digital in its bankruptcy filing in July.
“Our goal is to resolve the current situation without the need to file for bankruptcy,” said a Genesis spokesperson, and declined to comment on whether it has hired additional advisors.
Genesis, owned by the Digital Currency Group, cryptocurrency The stock market has been under pressure from its creditors since FTX began crashing this month. Genesis was a trading partner with FTX and said $175 million of its assets were stuck in FTX when the exchange froze accounts shortly before filing for bankruptcy this month.
Barry Silbert, founder and CEO of Digital Currency Group, said in a letter to clients on Tuesday afternoon:
“This is a liquidity and time mismatch issue on the Genesis credit account. More importantly, these issues have no impact on Genesis’s spot and derivatives trading or custody business, which continues to operate as usual.”
*Not investment advice.
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