Crypto News

Crypto lender Genesis is asking Binance and Apollo for cash

Cryptocurrency company Genesis Global Capital is still trying to raise cash.

The lender has approached crypto exchange Binance to make an investment and bid on its loan book, according to people familiar with the matter.

According to one of those familiar with the matter, Binance decided not to invest due to fears that some of Genesis’ deals could create a conflict of interest later. The company has also reported Private equity giant Apollo Global Management APO 0.83%

for capital assistance, according to people familiar with the matter.

“We have no plans to file for bankruptcy immediately. Our goal is to resolve the current situation amicably without having to file for insolvency. Genesis continues to have constructive discussions with creditors,” said a Genesis spokesperson.

Genesis faced a spate of withdrawals from its credit arm following the collapse of crypto exchange FTX. The company first sought a $1 billion emergency loan from investors before telling customers in a quick call Nov. 16 that it was suspending repayments and lending, Genesis said. At that meeting, interim CEO Derar Islam said that Genesis will present a plan for its lending business this week.

Genesis’ contact with Binance was first reported by Bloomberg.

Genesis became the latest crypto lender to pause payouts last week following the rapid and sudden collapse of FTX founder Sam Bankman-Fried’s crypto empire. The Wall Street Journal previously reported that Genesis has outstanding loans to Alameda Research, an FTX affiliate trading company that Mr. Bankman-Fried founded, with its own cryptocurrency was used by FTX as collateral.

Genesis Three Arrows borrowed $2.4 billion earlier this year, according to court documents. Genesis’ parent company, Digital Currency Group, has a $1.2 billion claim against the hedge fund.

In August, Genesis laid off 20% of its 260 employees as part of a reorganization that saw then-CEO Michael Moro departing.

Genesis had $2.8 billion in active loans at the end of the third quarter, compared to $11.1 billion in the quarter last year when cryptocurrency values ​​were booming, according to the company’s financial statements.

Binance CEO Changpeng Zhao said earlier this month that Binance is establishing a recovery fund to help strong cryptocurrency projects facing temporary liquidity shortages. Mr. Zhao said details about the fund would be announced in the future.

Authors: Vicky Ge Huang at, Patricia Kowsmann at, and Caitlin Ostroff at

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button