FTX sudden collapse has sent ripples across the crypto industry. Will Genesis become the next in line for a bankruptcy filing?
As reported by TechCrunch, the crypto firm Genesis has “no plans to file bankruptcy imminently,” despite facing a liquidity crisis after FTX collapsed.
The digital assets company currently looks to raise fresh capital for its lending unit. However, reports are that Genesis has cut its capital raise target by 50% from $1 billion to $500 million. Furthermore, analysis suggests that the firm may face bankruptcy without funding.
Nevertheless, the company representatives remain optimistic about the liquidity crisis. According to Genesis spokesperson, the firm wouldn’t necessarily file for bankruptcy, as it “continues to have constructive conversations with creditors.”
Since the FTX bankruptcy created market turmoil, Genesis has temporarily suspended redemptions and new loan originations in its lending business. Previously, the firm reported it had $175 million in “locked funds” in its FTX trading account, stating it “does not impact our market-making activities.”