Genesis, the troubled cryptocurrency brokerage that was forced to suspend consumer withdrawals last week in the wake of crypto exchange FTX’s implosion, has warned that it may need to file for bankruptcy protection, according to published reports. But the company pushed back against the narrative.
“We have no plans to file bankruptcy imminently,” Genesis said. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”
The initial news shook crypto investors a bit. Bitcoin (BTC-USD) fell below $15,500 to a new 52-week low yesterday before rebounding and is lower this morning. Ethereum (ETH-USD) and Dogecoin (DOGE-USD) are also lower. The possible bankruptcy also underscores how FTX’s collapse has sent shockwaves through the wider crypto ecosystem that don’t appear to be abating.
Genesis was said to have spent the past few days trying to raise at least $1B in new capital from potential investors amid its liquidity crunch. Binance was included in such talks, people told Bloomberg, though funding has yet to come to fruition.