Binance Will not Invest in Crypto Lender Genesis: WSJ

Binance-Will-not-Invest-in-Crypto-Lender-Genesis-WSJ
  • Binance declined to make the investment owing to potential conflicts of interest.
  • Genesis also asked Apollo Global Management for financial investment.
  • Genesis` miseries started when there was a rush on withdrawals at the company’s linked exchange, Gemini.

Major prospective supporter Binance declined to make the investment after cryptocurrency lending business Genesis stopped customer redemptions. After stopping the redemptions, the troubled firm stated it would look for a $1 billion emergency funding loan. This comes prior to the Wall Street Journal post.

A person familiar with the situation told the Wall Street Journal that Binance declined the chance to participate in the financing company. controlled by the Digital Currency Group. This was due to a potential conflict with Genesis’ business strategy.

According to the publication, Genesis also asked Apollo Global Management for financial investment. Despite Binance rejecting to invest, Genesis is still considering all of its alternatives and doesn’t seem to be in a rush to declare bankruptcy.

 “We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors,” a Genesis spokesperson said earlier.

According to a source citing a private document, the issues with Genesis started when there was a rush on withdrawals at the company’s linked exchange, Gemini, following the demise of cryptocurrency exchange FTX.

The third-largest cryptocurrency exchange, FTX, collapsed earlier this month. This shocked the industry and drew analogies to the 2008 fall of Lehman Brothers as well as accusations of fraud and poor management.

Sam Bankman-Fried, the creator of FTX who left his position as CEO earlier this month, spoke with Vox this past week. He however appeared to retract some of his views. He expressed sorrow for his choice to file for bankruptcy protection and criticized authorities for failing to safeguard consumers.

Investors are presently suing Bankman-Fried and other celebrities who pushed FTX for $11 billion.

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