Crypto broker Genesis Global has approached Binance for a new cash injection, but the crypto exchange did not respond.
Genesis in trouble
Binance has rejected an offer to invest in Genesis. It has done this because of a potential conflict of interest that may arise.
Last week, Binance announced the creation of an “industry recovery fund” to rescue crypto projects facing liquidity problems.
Genesis, which last week attempted to raise a $1 billion loan from investors to avoid a liquidity crisis, also approached private equity firm Apollo Global Management for capital in addition to Binance, according to the report, according to the report.
Genesis Global, which is owned by Barry Silbert’s Digital Currency Group (DCG), launched the industry’s first over-the-counter Bitcoin trading desk in 2013. In doing so, it became one of the biggest players in the crypto world.
Despite its high-profile status, Genesis is the latest victim of the collapse of Sam Bankman-Fried’s FTX business earlier this month.
Genesis not filing for bankruptcy
On November 16, the company announced it was canceling withdrawals and loans. In doing so, the company pointed to abnormal withdrawal requests from its credit division Genesis Trading.
It was also reported that Genesis had loans outstanding with Alameda Research, a trading company related to FTX, with FTX’s own token FTT as collateral
Genesis also revealed that its derivatives business had $175 million in escrow funds in the FTX account. However, it said this would not affect its business.
Genesis warned yesterday that it could go bankrupt.
Our goal is to resolve the current situation without the need for bankruptcy filings. Genesis continues to engage in constructive discussions with creditors.
– Representative of Genesis.