Binance CEO Considering Buying Genesis Loans
Binance CEO Changpeng Zhao has initiated contact for more information on Genesis’ balance sheet health as he considers a potential bid on Genesis lending assets. Genesis included $2.8 billion in active loans in its Q3 2022 report.
As reported by Blockworks, sources revealed that Binance CEO Changpeng Zhao intends to buy back Genesis loans. The Binance CEO has begun gathering more information about Genesis’ balance sheet health as he considers purchasing Genesis loans, a person familiar with the matter said.
As of the end of Q3 2022, Genesis Global Capital’s total loans were $2.8 billion. Another person familiar with the matter pointed out that any approach could be rejected by DCG, Genesis’ parent company, and that Changpeng Zhao could need to invest more than $2 billion.
As updated in a previous Coincu News article, Genesis Global Trading Interim CEO Derar Islim said on a creditors conference call today that Genesis Global Capital, the money lender its electronics, suspended customer acquisitions and issued new loans. Genesis is looking for solutions for the lending sector, including finding new sources of liquidity.
According to an unconfirmed source, Genesis may have solvency issues. The cause was determined to be due to very large exposure to FTX and Alameda Research. Information also revealed that things will be clearer today.
To bolster trust with customers amid the crisis, CZ later stated that Binance’s Monetization product does not rely on Genesis or any other third party.
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