In a client letter released Wednesday, Genesis said it would take weeks rather than days to work on a plan to address issues at its lending unit.
Genesis Says Recovery Will Take Weeks
According to a copy of the compromised letter, the crypto lender wrote that it was working “consulting with highly experienced advisors and in close collaboration with owner DCG” and holding talks with client representative groups.
Genesis, FTX cryptocurrency It had to halt withdrawals and new lending transactions last month due to problems stemming from the stock market crash. The company last month warned of a potential bankruptcy if it failed to secure emergency financing.
The company used the following statements on the subject in the letter it sent to its customers:
“As you know, these are extraordinary times in our industry, and while we are working on an urgent basis, this is an extensive process that we expect will take some time.
At this point, we estimate it will take weeks rather than days for us to find a way forward.”
Derar Islim, CEO of the company, stated that all other Genesis operations, namely trading and custody services, are fully operational.
The process that started with the bankruptcy of FTX caused many companies in the crypto money market to be affected by this collapse. Other companies filing for bankruptcy include BlockFi, another cryptocurrency lender.
The Digital Currency Group, the parent company of Genesis, also runs Grayscale.
*Not investment advice.
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