The company never got the fund it requested.
Crypto lending firm – Genesis – reportedly sought an emergency loan of $1 billion from investors before notifying its clients of suspending redemptions this week.that the company needed access to the credit facility by 10 a.m. Monday, specifying a “liquidity crunch due to certain illiquid assets on its balance sheet.” Genesis, however, failed to get the funds.Genesis’s spokeswoman further clarified that the document in question was prepared over the weekend in the wake of FTX’s collapse.
The document offered potential investors a chance of a controlling ownership in Genesis, an ownership stake in one of Digital Currency Group’s subsidiaries, or a minority stake in the holding company. DCC is the parent company of the brokerage firm.Genesis had also been exploring all possible avenues as a result of the liquidity crunch precipitating from the FTX fallout that shook the industry.
The interim chief executive of the firm Derar Islim said that the lending arm – Genesis Global Capital – failed to meet all withdrawal requests. It also onboarded advisers to explore all possible options. The unit serves an institutional client base.Another Blow Troubles for Genesis first started brewing after the collapse of a once-prominent crypto hedge fund – Three Arrows Capital , that filed for bankruptcy this summer. The company reportedly lent $2.4 billion to 3AC. Furthermore, Digital Currency Group has a $1.2 billion claim against the bankrupt hedge fund.came in the form of FTX implosion.
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