Genesis, a crypto investment company affiliated with Digital Currency Group, gave signals that it is on the verge of bankruptcy yesterday evening. The billion-dollar company is negotiating with Binance and Apollo about backing funding to seek a solution.
FTX bankruptcy continues to create a domino effect in the crypto money markets. Last week, Genesis announced that the company’s $2.8 billion reported that the crypto lending platform was suspending withdrawals. In the process that followed, the company finally broke its silence last night.
The first report by Bloomberg was that Genesis would soon file for bankruptcy if it couldn’t find bailout funds. After this news, the cryptocurrency market experienced a shock effect and Bitcoin (BTC) price $15,500 decreased to levels.
Less than an hour after the first news, a new news came from Reuters. It has been announced that the situation of Genesis is not that critical and that they will not be filing for bankruptcy any time soon. However, the company asking for loans from investors and it has been understood that the talks on this issue have been going on since Thursday last week.
The amount needed for the Genesis emergency fund From $1 billion to $500 million reported to have been dropped.
We have no plans to file for bankruptcy anytime soon. Our aim is to resolve the current situation through reconciliation without the need for any bankruptcy filing. Negotiations with creditors continue.
According to the information provided by the Wall Street Journal (WSJ), the focus of the talks Binance and private equity firm apolla took place. Although there is no clear explanation from the parties, Bloombergparticularly as Binance may create a conflict of interest in this bailout. do not welcome He claimed. After the Genesis news emerged last week, the Binance team conducted research on the subject and the company was actively involved. 2.8 billion dollars in debt was found to have.