Genesis says it has no plans to file for bankruptcy

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Genesis says it has no plans to file for bankruptcy

After the collapse of FTX, Genesis said it had no immediate plans to file for bankruptcy.

We have no plans to file for bankruptcy when we do not have a chance of it happening soon. A Genesis spokesman said in an emailed statement to Reuters that it continues to have conversations with creditors, and that the goal is to resolve the situation consensually without the need for any bankruptcy filing.

According to a report from Bloomberg News, Genesis was struggling to raise fresh cash for its lending unit, and warned investors that it may need to file for bankruptcy if it doesn't find funding.

Sources said that the company approached Binance for an investment, but Binance decided against it, fearing a conflict of interest down the line.

According to the report, Genesis approached private equity firm Apollo Global Management for capital assistance.

Genesis Global Capital suspended customer redemptions in its lending business last week due to the sudden failure of Sam Bankman- Fried's FTX exchange.

The exchange, which runs a crypticurrency lending product in partnership with Genesis, has said it is continuing to work with the company to allow users to redeem funds from its yield-generating Earn programme.

After Genesis paused its withdrawals, Gemini said there was no impact on its other products and services.

On Thursday, the Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion from investors before it suspended its withdrawals.

FTX filed for U.S. bankruptcy protection in the highest-profile criptocurrency blow up to date earlier this month after traders pulled billions from the platform in three days and the rival exchange Binance abandoned a rescue deal.