VOT Research Desk
Genesis Global Capital, a crypto lender that suffered greatly as a result of the FTX outbreak, is looking into several options to avoid an abrupt collapse.
Days after suspending withdrawals, the Digital Currency Group (DCG) subsidiary announced employing Moelis & Co. to protect investors. Genesis’ acting CEO, Derar Islim, informed investors that the company had begun conversations with potential investors and our main creditors and borrowers, including Gemini and DCG.
By employing Moelis, the embattled crypto lender intends to “extend dialogues in the coming days. Due to its exposure to the defunct FTX, Genesis found itself plummeting like a deadweight in the air.
The corporation has been scrambling for investors to raise new financing during the previous three weeks. $175 million from its derivatives unit is no longer accessible since money is locked in a trading account at FTX.
Meanwhile, hope looks to be on the horizon, with DCG, Genesis’ parent company, contributing an additional $140 million to shore up the business’s balance sheet.
Although withdrawals and new loan applications are still suspended, DCG CEO Barry Silbert stated that other services such as the trading arm and custody unit are still operational.
