After the fall of one of the largest FTX crypto -streaks, Genesis, which works with digital assets, was on the verge of bankruptcy. Part of its funds are blocked in FTX, so now the company is looking for funds for salvation, writes Bloomberg.
Genesis is now in the search for funds for the lending unit, but she has already warned potential investors that in case of failure she would be forced to declare bankruptcy.
According to sources, the company turned to the largest crypto -based Binance cryptocurrency with a proposal to purchase a portfolio of loans and investing. Binance refused.
“We have no plans to immediately declare bankruptcy. Our goal is to solve the current situation on the basis of consensus without resorting to bankruptcy. Genesis continues to conduct constructive negotiations with creditors,” Genesis answered Bloomberg.
November 16, Broker stopped withdrawing client funds and issuing loans using digital assets.
Genesis is not the first cryptophyr that has problems this year. Bitcoin, which last year cost almost $ 69,000, has fallen in price by 77% and now costs $ 15,690. Other cryptocurrencies collapsed with it. This provoked a series of krahs of companies operating in crypto.
Terraform Labs, which produced algorithmic steablecoins (not secured by real dollars) Luna and Terrausd, collapsed in the spring. The general director of the company was put on the international wanted list. In July, bankruptcy was announced by the cryptocurrency Head Fund Three Arrows Capital, which traded for borrowed funds and lost about $ 3 billion. Recently, the FTX crypto officer was announced about bankruptcy.
In the case of her, the founder of Sam Bankman-Fried secretly transferred $ 10 billion of client funds to his company Alameda Research. Due to its unauthorized operations, FTX clients lost $ 1 billion to $ 2 billion.
“Cryptic collapse is a symptom of liquidity reduction in international capital markets in general. Bitcoin is predisposed to further weaken, since the monetary policy continues to tighten. It is worth waiting for cryptosyms, there will be new bankruptcy,” said the publisher of the Fuller Treacy Money investment bulletin Trisi.
In his opinion, you can expect Bitcoin stabilization after the Central Banks proceed to soften the monetary policy, which can happen somewhere after the mid-2023.