Cryptocurrency lender Genesis says no immediate plans to file for bankruptcy

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Genesis also approached private equity firm Apollo Global Management for capital assistance. (File)

Cryptocurrency lender Genesis said Monday it has no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions.

“We have no plans to go out of business any time soon. Our goal is to resolve the current situation by mutual consent without the need for a bankruptcy filing,” a Genesis spokesperson said in an emailed statement to Reuters, adding that it continues to hold talks with creditors.

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A Bloomberg News report, citing sources, said Genesis was struggling to raise fresh money for its lending unit, warning investors it may have to file for bankruptcy if it doesn’t find funding.

Also, citing sources, the Wall Street Journal reported that the company approached crypto exchange Binance looking for an investment, but Binance decided against it, fearing a conflict of interest over time.

Genesis also approached private equity firm Apollo Global Management for capital assistance, according to the report.

Apollo did not immediately respond to a request from Reuters for comment on the WSJ report, while Binance declined to comment.

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Last week, Genesis Global Capital suspended customer repayments in its lending business, citing the sudden failure of Sam Bankman-Fried crypto exchange FTX.

Crypto exchange Gemini, which operates a crypto lending product in partnership with Genesis, tweeted Monday that it continued to work with the company to allow its users to redeem funds from its revenue-generating “Earn” program.

In a statement on its blog last week, Gemini said there was no impact on its other products and services after Genesis paused shooting.

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On Thursday, the Wall Street Journal reported that Genesis applied for a $1 billion emergency loan from investors before suspending filming.

Earlier this month, FTX filed for US bankruptcy protection in the most high-profile crypto blowout to date, after traders took billions off the platform in three days and rival exchange Binance abandoned a bailout deal.

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