Crypto lender Genesis says no plans to file bankruptcy imminently

Nov 21 (Reuters) – Cryptocurrency lender Genesis said on Monday it has no plans to file for bankruptcy imminently, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions.”We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing,” the firm said in an emailed statement to Reuters, adding it continues to have conversations with creditors.A report from Bloomberg News, citing sources, said on Monday that Genesis was struggling to raise fresh cash for its lending unit, and warning investors it may need to file for bankruptcy if it does not find funding.Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s crypto exchange FTX.On Thursday, the Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion from investors before it suspended withdrawals.Earlier this month, FTX filed for U.S. bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.Reporting by Manya Saini in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

This article has been originally published at: https://www.reuters.com/technology/crypto-lender-genesis-says-no-plans-file-bankruptcy-imminently-2022-11-21/