The spokesperson for Genesis claimed, “"We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”
Genesis denied rumors of “imminently” submitting bankruptcy filings after failing to raise funds over the last week.
A few days ago, Genesis revealed it had a $175M exposure to Three Arrows Capital. Genesis also announced that its lender arm will suspend services following FTX's collapse.
Subsequently, Genesis began seeking emergency loans to avoid "[a] liquidity crunch due to certain illiquid assets on its balance sheet."
Bloomberg reported that Genesis’ spent the last few days trying to raise $1B worth of capital. The troubled lender also reportedly approached Binance and Apollo Global Management for aid. However, Binance refused to provide funds to Genesis, citing that bailing Genesis out of insolvency may lead to a conflict of interest in the future.
Similarly, sources claimed that Apollo is unlikely to provide financial assistance to Genesis.
Following its failure Genesis stated that it may file for bankruptcy if it is unable to acquire sufficient funds.
Meanwhile, Mario Nawfal, the CEO and Founder of IBC Group, said that the repercussions of Genesis’ collapse could be bigger than FTX's, noting,
“If Genesis fails to raise money, it would become the biggest casualty from the FTX collapse and will lead to a bigger cascade.”
