Genesis broker
Crypto Trends & News

The Genesis broker liquidity problems could be the next FTX

-The cryptocurrency company Genesis Broker denies that it is filing for bankruptcy imminently.

-He assures me that he is trying to obtain financing to be able to face asset withdrawals.

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Genesis Broker on the Brink: Liquidity Issues Signal Potential Next FTX Collapse

The cryptocurrency broker Genesis broker has denied that it is close to declaring bankruptcy, days after stopping asset withdrawals in response to the collapse of the cryptocurrency exchange platform FTX.

According to several media outlets, Genesis reported on Monday that it “has no plans” to declare bankruptcy in the immediate future and that it would seek to resolve the situation “in a consensual manner.”

“We have no plans to file for bankruptcy imminently,” a spokesperson said in a statement. “Our goal is to resolve the current situation in a consensual manner without the need to declare bankruptcy. Genesis continues to have constructive discussions with creditors.

Bloomberg was the that revealed that Genesis, which has offices in New York City, London, and Singapore, was having difficulty raising new cash for its lending unit and had warned investors that if it did not obtain additional funds could declare bankruptcy

The information, which cited sources familiar with the broker’s situation, said that the crypto investment bank needed at least $1 billion in new capital. Genesis asked the exchange platform Binance, which rejected the request due to “conflicts of interest”, according to The Wall Street Journal.

Genesis Global Capital is one of the largest crypto lenders now suffering liquidity shortages caused by a surge in asset withdrawal requests following the implosion of FTX.

The FTX collapse continues to shake the cryptocurrency industry and has been compared to the collapse of Lehman Brothers.

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