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 fully recovered and is trading around $15,913, which is where it was before the Bloomberg story was published.
“We have no plans to file bankruptcy imminently,” a Genesis representative told Bloomberg. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”
Genesis and CoinDesk share the same parent company, Digital Currency Group.
