BuyBitcoinswithDebitCard

Genesis Sought $1B Loan Before Halting Redemptions

by Rich

The company failed to obtain emergency funds before suspending withdrawals.

Key Takeaways

  • Genesis reportedly sought a $1 billion emergency loan before it suspended withdrawals this week.
  • The Wall Street Journal obtained an internal document to that effect and reported the news today.
  • Genesis has denied the document's relevance and stated that it is in positive discussions with investors.

Early this week, crypto lending firm Genesis sought a $1 billion emergency loan from investors without success before halting withdrawals Wednesday.

Genesis Sought Emergency Loan

Genesis Global Trading sought an emergency loan before halting withdrawals earlier this week.

The Wall Street Journal reported today that Genesis attempted to gain access to a $1 billion credit facility by Monday, November 14, but ultimately failed to obtain those funds, citing a confidential internal document it had seen.

The company cited a “liquidity crunch due to certain illiquid assets on its balance sheet” as the reason for its request. Genesis reportedly experienced a run on deposits related to its retail partners—specifically Gemini Earn, an interest-bearing program from the crypto exchange Gemini.

A Genesis representative denied that the document remains relevant. That representative told the Wall Street Journal that the firm is now in “positive conversations” with investors. She added that the firm is “exploring all possible options” and working to “identify the best solution and outcome possible for clients” during its service suspension.

Genesis first announced that it would suspend withdrawals on Wednesday. Gemini concurrently announced that it would halt its Gemini Earn program.

At that time, Genesis cited “extreme market dislocation and loss of industry confidence” resulting from FTX’s collapse as its reason for suspending services. However, it made little comment about its own liquidity at that time.

Earlier, on November 10, Genesis said that it had just $175 million of funds locked with FTX. The company also emphasized that it had “no material exposure” to FTX’s FTT token or any other centralized exchange tokens.

As such, the firm’s difficulties appear to be related to larger fluctuations in the crypto market—or possibly unrelated investments that have not yet come to light.

Genesis also had exposure to Three Arrows Capital (3AC) and was impacted by the latter firm’s bankruptcy this summer.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

FTX Contagion: Genesis and Gemini Hit in Crypto Chaos

News Nov. 16, 2022

Genesis Global Capital has temporarily suspended redemptions and new loan originations following the spectacular collapse of the FTX cryptocurrency exchange.  Genesis, Gemini Hit by FTX Contagion  Early signs of contagion...

FTX Contagion: Genesis and Gemini Hit in Crypto Chaos

Genesis CEO Steps Down as Firm Cuts 20% of Staff

Institutional crypto broker Genesis Global Trading has announced that its CEO Michael Moro is resigning and it will be cutting 20% of its workforce. The move marks further fallout from...

Genesis CEO Steps Down as Firm Cuts 20% of Staff

Genesis Trading Confirms “Large Counterparty” Liquidation Amid 3AC...

News Jun. 17, 2022

The update comes as the celebrated crypto hedge fund Three Arrows Capital faces its biggest liquidity crisis to date.  Genesis Trading Says It Liquidated Counterparty Genesis Trading has confirmed that...

Genesis Trading Confirms “Large Counterparty” Liquidation Amid 3AC...


BuyBitcoinsWithUsdEur