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 after its lending subsidiary was compelled to cease withdrawals following the collapse of the crypto exchange FTX.
Additionally, citing knowledgeable sources, the Wall Street Journal said that Genesis sought money from Binance and Apollo Global Management, but Binance declined to invest due to potential conflicts of interest.
The first revelation drove the price of bitcoin (BTC) to a new two-year low of $15,480. As of this update, however, the price has fully recovered to pre-Bloomberg levels, trading around $15,913 per coin.
A Genesis official told Bloomberg they have no immediate intentions to file for bankruptcy. Their objective is to address the current issue amicably without filing for bankruptcy. Genesis maintains productive communications with creditors.
Digital Currency Group is the parent firm of both Genesis and CoinDesk.