Investing.com – Cryptocurrency broker Genesis is having trouble raising funding for its credit division, Bloomberg writes, citing knowledgeable sources. According to them, the company has warned investors that it may have to file for bankruptcy if it fails.
According to the agency’s sources, Genesis has been trying to raise at least $1 billion in new capital over the past few days. The company has been in talks with cryptocurrency exchange Binance, but has not yet received additional investment, Bloomberg points out.
Genesis began actively seeking funding after a liquidity crisis caused by the collapse of the cryptocurrency exchange FTX. On Nov. 16, the broker suspended withdrawals from its platform because it couldn’t meet the demands of customers who began withdrawing money abruptly. Shortly before that, Genesis disclosed that $175 million had been blocked in its FTX trading account.
“We have no plans to file for bankruptcy anytime soon. Our goal is to resolve the current situation by consensus without filing for bankruptcy. Genesis continues to negotiate constructively with creditors,” a company spokesman told Bloomberg.
The value of bitcoin fell to a two-year low of $15,480 amid Bloomberg’s publication of the possible bankruptcy of Genesis, Coindesk reports.
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