Genesis, a company that lends out cryptocurrency, said on Monday that it has no plans to file for bankruptcy right away. This comes after the collapse of the cryptocurrency exchange FTX, which forced Genesis to stop customer withdrawals.
“We don’t have any plans to file for bankruptcy soon.” Our goal is to work out what’s going on without going to court or filing for bankruptcy. In an email to Reuters, a spokesperson for Genesis said that the company is still talking with its creditors.
Sources told Bloomberg News that Genesis was having trouble getting more money for its lending unit and was warning investors that it might have to go bankrupt if it couldn’t find the money.
Also, the Wall Street Journal said, citing sources, that the company asked the cryptocurrency exchange Binance to invest in it, but Binance said no because they were afraid of a future conflict of interest.
According to the report, Genesis also asked Apollo Global Management (NYSE: APO), a private equity firm, for help with capital.
Apollo didn’t respond right away when Reuters asked for a comment on the WSJ report, and Binance didn’t want to say anything.
Last week, Genesis Global Capital stopped customers from cashing out their loans. They did this because of Sam Bankman’s cryptocurrency from cashing out their loans. They did this because Sam Bankman’s cryptocurrency exchange, FTX, suddenly failed.
Gemini and Genesis work together to run a cryptocurrency lending service called “Earn.” On Monday, Gemini tweeted that it was still working with Genesis to let its users get their money back from “Earn.”
Gemini said on its blog last week that Genesis stopping withdrawals would not affect any of its other products or services.
On Thursday, the Wall Street Journal reported that Genesis had asked investors for an emergency loan of $1 billion before it stopped letting people take money out of their accounts.
This month, FTX filed for U.S. bankruptcy protection in the biggest crypto scandal to date, after traders pulled billions of dollars from the platform in three days and rival exchange Binance backed out of a rescue deal.