Genesis Trading, a crypto brokerage firm, is currently in a big trouble. Trying to raise fresh capital, the platform turned to players such as Binance and Apollo Global Management. However, according to the allegations, Binance does not prefer to invest in Genesis. Here are the details…
Binance will not invest in Genesis
Days after FTX was forced to halt withdrawals following the collapse of the crypto exchange, Genesis Global Trading has started to suffer. He mentioned bankruptcy as a potential option when seeking new capital, Bloomberg claims. On the other hand, the Wall Street Journal, again citing familiar people, stated that Genesis is seeking funding from Binance and Apollo Global Management. But he reported that Binance refused to invest, citing possible conflicts of interest.
Over the past few days, Genesis plans to raise $1 billion in fresh capital. The reason behind this new funding is that the crypto lender is facing a major liquidity crisis during major withdrawals on the platform. On November 10, Genesis stated that it had $175 million locked in an FTX trading account. Then he stopped the redemptions.
Genesis spokesperson used different expressions
In fact, Genesis’ problems started earlier this year with the collapse of Three Arrows Capital (3AC). Digital Currency Group, parent company of Genesis Global, is reclaiming $1.2 billion in hedge funds. A few of the sources also said that Genesis has cut its fundraising goal by 50 percent from $1 billion to $500 million.
Commenting on current developments, a Genesis spokesperson said they have no “imminent” plans to file for bankruptcy. “We have no plans to file for bankruptcy anytime soon. Our aim is to resolve the current situation with reconciliation without the need for any bankruptcy filing. Genesis continues to engage in constructive talks with creditors.”
FTX crash had widespread impact
The collapse of crypto exchange FTX has far-reaching consequences for the crypto industry. Recent developments in Genesis have also led crypto exchange Gemini to suspend the Earn program for the time being. cryptocoin.com As we’ve reported, Genesis is Gemini’s partner on the Earn show. Gemini said they are working closely with Genesis and its parent company, Digital Currency Group, on this issue.
On the other hand, concerns about companies within the Digital Currency Group are growing. Grayscale Bitcoin Trust (GBTC), offered by Grayscale, which offers the largest Bitcoin and altcoin funds, is trading at a large discount. Grayscale announced its own assets after many Bitcoin platforms showed proof of reserve. However, he recently announced that he will not share cold wallet addresses.
Bitcoin at two-year low after Binance news
Initial news sent Bitcoin (BTC) to a two-year low of $15,480. The price is changing hands at $15.781, down 2.4 percent as of writing.
