Market Maker B2C2 Proposes To Repurchase Genesis Loans
Genesis Trading, which recently froze withdrawals due to its role in the FTX exchange’s collapse, has been offered to buy back debts by B2C2.
After the stunning failure of FTX, the B2C2 market maker made an offer to purchase loans from Genesis‘ lending division. Due to a shortage of liquidity following the FTX crisis, Genesis Trading informed customers on the evening of November 16 that it would no longer support withdrawals or provide new loans.
A subsidiary of Digital Currency Group, which also owns CoinDesk, Genesis is a privately held firm. Notably, the current worldwide liquidity crisis was sparked after CoinDesk was the first to uncover a $10 billion hole in Alameda Research‘s financial sheet.
“Throughout the crypto market’s turbulence, B2C2 has been there for customers, providing liquidity, assistance, and a significant investment. Working with Genesis and its partners, the company can “renovate” current loans at Genesis Global Capital to B2C2, thereby expanding the company’s market into the lending sector. Borrowers can rest certain that their funds will be handled according to B2C2’s approved risk management methodology.”
When the firm creator Max Boonen first suggested buying back loans to “ease liquidity gaps” in a tweet, he was met with skepticism.
Boonen stated, “it is desirable to initiate a negotiation,” and that they will “not buy up” all outstanding loans in Genesis when asked if the tweet was a formal offer.
B2C2 announced last week that CEO Phillip Gillespie will be departing the company and being succeeded by Nicola White, who had previously worked at Citadel Securities.
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