Digital-asset brokerage Genesis Is struggling to Increase its cash flow to finance its lending unit it’s warning Potential investors That it may Not required to For more information, please contact bankruptcy If its efforts are unsuccessful, to People who are knowledgeable in the subject.

Genesis Has spent the last several days trying to raise at least $1 Billion in new capital. said The people who did not ask to be Because discussions are confidential, they were not identified. These discussions included discussions about a potential investment from the crypto exchange Binance. saidHowever, funding has so far been insufficient to materialize.

The rush for funding was precipitated by a liquidity crunch at the lender after the sudden collapse of FTX, one of the world’s largest crypto exchanges. Genesis Shortly after the Nov. 10 reveal, redemptions were halted it Had $175 million locked In an FTX trading accounts. 

“We have no plans to file bankruptcy imminently,” Representative Genesis said In an emailed statement “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

A representative for Binance declined to comment.

Other platforms are facing their own struggles as redemption requests roll in after FTX’s bankruptcy Filings have roiled the cryptocurrency sector and left investors Be aware of the possibility of contagion

Genesis Is there a counterparty? to many in the digital-asset space and is closely watched as a gauge of the industry’s strength. It’s among the crypto lenders that are feeling acute strain after a prolonged rout in virtual-coin prices amid multiple high-profile blowups.

The problems at Genesis The billionaire Winklevoss twins Tyler, Cameron, and the Gemini crypto-exchange owners, were also in attendance.

As a response to Genesis Gemini stopped withdrawals and halted redemptions of its Earn product. Gemini stopped withdrawals and halted redemptions from its Earn product. to A person familiar with this matter says that $700 Million of customer money has been held in escrow it.

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