After the collapse of FTX, Genesis said on Monday it has no immediate plans to file for bankruptcy.
We don't plan to file for bankruptcy in the near future. A Genesis spokeswoman said in an email to Reuters that the company 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 Bloomberg News, Genesis is struggling to raise fresh cash for its lending unit, and warns 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.
The sudden failure of Sam Bankman- Fried's FTX caused Genesis Global Capital to suspend customer redemptions in its lending business.
On Monday, the exchange Gemini, which runs a product in partnership with Genesis, 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.
After traders pulled billions from the platform in three days and the platform's rival exchange Binance left a rescue deal, FTX filed for U.S. bankruptcy protection in the highest-profile criptocurrency blowup to date.