Genesis Admits Can’t Reopen Withdrawal For Customers

December 8, 2022 - Around 2 mins mins to read

Popular institutional cryptocurrency broker Genesis has been in constant talks with potential creditors and investors, but the company admits there is no solution yet settlement for reopening withdrawals for customers.

In a letter to clients on the morning of December 7, Genesis Interim CEO Derar Islim said that resolving the withdrawal freeze could be a problem that would take weeks, not days, to resolve.

“At this point, we anticipate that it will take additional weeks rather than days for us to arrive at a path forward. As we progress, you will hear from us on meaningful developments, including any updates on timing.” ~ Genesis to clients
— Frank Chaparro (@fintechfrank) December 7, 2022

As has been updated in previous articles, Genesis Trading in mid-November was forced to block withdrawals following the collapse of the FTX exchange. The company also revealed exposure of up to $178 million.

Since then, this company has been trying to raise capital and work to reach an agreement with its creditors. The company even hired investment bank Moelis & Company to explore resolution options, including preparing for the possibility of bankruptcy.

Investors’ anxiety was pushed to a peak in the case of Genesis when there was a lot of information that the company wanted to raise $ 1 billion before making the above decision, revealed even more liquidity loss. In addition, Binance has stated not to participate in the “rescue”.

The Financial Times previously reported that Genesis owed about $900 million to Gemini which is owned by the Winklevoss brothers, and another group of Genesis creditors had loans totaling $900 million, represented by law firm Proskauer Rose.

Yesterday, Gemini has launched a transparent page to monitor Genesis and DCG on repayment progress for users participating in the Earn program.

However, in the face of the above situation, DCG CEO Barry Silbert also spoke up after a series of “chaotic” days of the subsidiary through a letter to investors with the content mainly reassuring that his company is still “fine”.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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