Cryptocurrency broker Genesis has warned investors of possible bankruptcy. This will happen if the company fails to raise funds. The lack of liquidity that Genesis faced was a consequence of the collapse of the FTX cryptocurrency exchange.
Cryptocurrency broker Genesis has addressed investors with a declaration of possible bankruptcy, Bloomberg writes, citing sources familiar with the situation. Genesis has not made an official statement.
The bankruptcy of Genesis will occur if the company fails to raise financing to provide funds to its lending division. Genesis has been trying to raise $1 billion in recent days, including from cryptocurrency exchange Binance, but so far without success, the agency clarifies.
The lack of liquidity that Genesis faced was a result of the collapse of one of the largest cryptocurrency exchanges, FTX. After the scandalous investigation by CoinDesk was released, investors began to massively withdraw funds from FTX.
FTX itself, or rather its employees, after filing for bankruptcy, was convicted of wasting the company’s money. FTX Property Holdings Ltd, a division of the stock exchange, has acquired 15 properties worth about $100 million, according to Reuters.
Author:
Kirill Bilyk
Source: RB
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