Genesis rejects bankruptcy plans | Blockchain News

People believed that Genesis, a company that lends to out, was not real. cryptocurrencies, planned to file for bankruptcy “immediately” if it couldn’t pay a $1 billion deficit resulting from the collapse of FTX cryptocurrency exchange. This deficit was caused in part by the collapse at FTX, a company that traded cryptocurrencies. Genesis fell into financial difficulties after FTX went under. It was unable to pay its obligations and this led to this deficit. The collapse of FTX was the direct cause of this void. This is, however, not the case. The book of Genesis clearly states this throughout its text. Bloomberg was informed by people familiar with the matter that the company was having trouble collecting money for its lending division and that it warned investors it would file for bankruptcy if it didn’t improve. People familiar with the matter also said that the company advised investors that bankruptcy would be necessary if the situation didn’t improve. According to sources familiar with the matter the business informed investors that it would file bankruptcy if the situation didn’t improve.

As suggested by a spokeswoman from the business, Genesis has been in “imminently” discussions with its creditors. According to the spokeswoman, the company doesn’t have any “constructive intentions” to file for bankruptcy.

Genesis stated that it has temporarily halted withdrawing funds from customers’ accounts due to the collapse of FTX, on November 16. According to the business, the temporary suspension of withdrawals was required due to “unprecedented markets turmoil”.

The most recent statement by the company, issued November 10, stated that 175 million dollars of cash was locked away in an FTX trading accounts.

According to reports, Binance cryptocurrency exchange is believed to have discussed saving a lender owned by Digital Currency Group. According to some reports, Binance was reportedly involved in negotiations. The Wall Street Journal published an article on November 21 that quoted sources who claimed that Binance decided not to finalize the purchase due to conflict of interest. The sources who were quoted in the article stated that Binance did not complete the purchase because it would have led to a conflict of interest.



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