Daily Management Review

Bloomberg forecasts bankruptcy for Genesis crypto broker


According to Bloomberg, cryptocurrency broker Genesis has informed investors that if it can't find additional capital, it may have to declare bankruptcy.

According to persons familiar with the situation, cryptocurrency broker Genesis is having trouble securing funds for its loan division, as reported by Bloomberg. Investors were advised by the company that it might have to file for bankruptcy if it failed, they claimed.

Sources claimed that Genesis has been attempting to raise at least $1 billion in additional funding over the previous few days. According to Bloomberg, the company had discussions with the Binance cryptocurrency exchange but has not yet gotten more funding.

After the liquidity crisis brought on by the failure of the FTX bitcoin exchange, Genesis started actively looking for funds. As a result of being unable to meet demands of customers who suddenly started withdrawing money on November 16, the broker banned withdrawals on its platform. Genesis had previously revealed that their $175 million FTX trading account had been frozen.

source: bloomberg.com