VOT Research Desk
Genesis Global Trading has cited bankruptcy as a potential option as it seeks new funding, Bloomberg reports, citing people with knowledge of the situation.
This comes days after its lending business was forced to cease withdrawals following the collapse of cryptocurrency exchange FTX.
According to the Wall Street Journal, which also cited persons with direct knowledge, Genesis requested money from Apollo Global Management and Binance, but Binance turned it down due to potential conflicts of interest.
Upon hearing the first report, bitcoin (BTC) dropped to a new two-year low of $15,480. But as of this update, the price has entirely rebounded and is trading about $15,913, which is where it was before the Bloomberg piece was published.
We do not have any immediate intentions to file for bankruptcy, a Genesis official told Bloomberg. Our intention is to reach a mutually agreeable solution to the current predicament without declaring bankruptcy. Genesis is still having fruitful discussions with its creditors.
