Genesis fails to raise funds as FTX contagion weighs on DCG-owned company
Crypto Broker Genesis Fails To Raise Funding And Could Face Bankruptcy Without Additional Funding, Bloomberg report November 21st.
The company is rumored to be seeking a $1 billion cash injection into its business after suspending withdrawals of its loan products last week.
Concerns over possible bankruptcy of Genesis could spill over to parent company Digital Currency Group. Genesis makes up the majority of its holdings alongside Grayscale, which has been in the spotlight for failing to produce evidence of its reserves.
A statement sent to Bloomberg revealed
“We have no plans to file for imminent bankruptcy…Our goal is to reach a consensual resolution of the current situation without the need to file for bankruptcy. Genesis continues to have constructive conversations with creditors.” .”
The lack of new funding is based on ongoing talks that Genesis is seeking investment. CryptoSlate reported on Nov. 17 that the company has struggled to attract new investments since the collapse of FTX. But on November 17, a Genesis spokesperson told The Wall Street Journal that the brokerage was having “very positive conversations.”
In addition, Genesis CEO Michael Moro commented, “We mitigated losses with large counterparties who failed to meet our margin calls.”research by crypto slate Genesis has revealed that it has received over $1 billion in FTT tokens over the past three months.
Genesis received approximately 78 million FTT tokens between June and September of this year. At the time of the transfer, the tokens were valued at approximately $2.3 billion. At the time of writing, the same token is worth just $98 million, and the token price has dropped from $30 to just $1.28.Another 10 million FTT tokens were transferred in November after a significant drop in price
According to a Bloomberg article, the company also revealed that it has $175 million locked in FTX.
Recent crypto slate The Op-Ed highlighted potential risks to the parent group DCG over the possible failure of Genesis. It’s a worrying time for the crypto investment giant given DCG’s failure to step in to bail out Genesis.If Genesis and his DCG follow his FTX path, the pain in the crypto industry will It may expand further. When it comes to projects within DCG’s portfolio, crypto slate We learned that DCG failures “affect us.”
