The Uncertainty of Genesis' Future Sends Bitcoin Prices Tumbling Genesis Global Trading has mentioned bankruptcy as a potential option as it seeks a fresh round of capital in the wake of the collapse of the cryptocurrency exchange, FTX
By Saptak Bardhan •
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Genesis Global Trading has mentioned bankruptcy as a potential option as it seeks a fresh round of capital in the wake of the collapse of the cryptocurrency exchange, FTX. This comes a few days after the lending unit was forced to halt withdrawals due to the implosion of Sam Bankman-Fried's FTX, reports Bloomberg.
According to the Wall Street Journal, Genesis was in search of investment from Binance and Apollo Global Investment. However, Binance declined the proposal stating potential conflict of interest.
Binance had agreed upon a non-binding letter of intent to acquire FTX. The deal fell through post 24 hours of the agreement as the leading global cryptocurrency exchange stated the reasons as mishandling customer funds, alleged US agency investigations as well as corporate due diligence.
FTX has filed for bankruptcy and owes nearly $3.1 billion to its biggest creditors according to a filing in a US bankruptcy court.
The largest creditor is owed approximately $226 million. FTX owes approximately $1.46 billion to its top 10 creditors.
Bitcoin plunged to a fresh two-year low of $15,480 after the release of the initial news. However, the price has fully recovered to $15,913 since then.
