We Will Not File For Bankruptcy Yet

As a result of what transpired with the FTX, the Genesis loan firm is on the verge of going out of business completely. After the failure of FTX, a significant number of investors took their money out of the exchange. This was the cause of this situation.

Genesis had a considerable amount of exposure to two firms that went bankrupt, namely FTX and Three Arrows Capital (3AC).

Nevertheless, the corporation has made it very apparent that it will postpone the process of filing for bankruptcy even if the current cash problem is severe. They are not willing to continue with the legal case at this time despite the fact that nobody can accurately anticipate what will occur in the future.

Genesis is making an appeal to businesses and investors to reinvest in this company so that it can get back to where it was before the liquidity crunch and get out of its current situation.

A spokesperson for Genesis said in a statement that the company's initial goal was to settle the matter amicably without declaring bankruptcy and that the company is still looking for investors to provide loans to help remedy the situation. The statement also added that the company is still looking for investors.

The company was unable to secure emergency funding from its creditors totaling more than one billion dollars, despite their best efforts. As a result of this failure, Genesis was forced to halt any and all withdrawals from its lending business. In addition to this, it placed blame for the liquidity crisis on the FTX meltdown, claiming that this was the cause of FUD (Fear, Uncertainty, and Doubt) in the cryptocurrency space.

After the CEO of FTX, Sam Bankman Fried, filed for bankruptcy protection, there was widespread fear and outrage in the cryptocurrency field. Investors withdrew their money from exchanges and moved it to personal wallets as a precautionary measure.

The Liquidity Crunch Is Linked To Genesis, And FTX Is Linked To It

The liquidity issue that the Genesis lending firm has been having has been linked to its close relationship with FTX. It was discovered that Genesis had deposited and kept more than $150 million of its cash in the FTX trading account it maintained. In addition to this, it had a working relationship with the company known as 3AC, to which it extended a loan of over $2 billion just before 3AC declared bankruptcy.

The liquidity that had taken control of Genesis only a few days after the two exchanges had failed and crumbled was welcomed with open arms by these investments and lending institutions.

However, in an effort to recoup its losses, Genesis has reached out to Binance, the company that operates the most significant cryptocurrency exchange. Genesis has attempted to resolve the liquidity crisis that is plaguing its company by reaching out to Binance for assistance; however, Binance has not yet acknowledged this communication or confirmed that it took place.