Financially struggling crypto lending platform Genesis reportedly hired experts to bring the platform back to usual working situations for the customers.
Genesis Trading is an institutional digital assets trading, lending, derivatives & also crypto assets custody service provider company. Since May, this company was facing financial challenges because of critical volatility in the crypto market, which was initiated with the Terra project collapse.
On 22 November, New York Times reported that Genesis Global Trading hired investment bank Moelis & Company to explore options. The report also confirmed that the struggling crypto lending company still has not reached any financial situation, so there are chances that the company may not go for a bankruptcy filing.
It is worth noting that, Genesis-like struggling platform Voyager Digital hired Moelis & Company and days later filed for bankruptcy in the Southern District Court of New York.
A spokesperson from Genesis Global Trading shared some information regarding the current situation of the company, with Cointelegraph.
Genesis official said that the company is currently not planning to go through with bankruptcy filing & also trying to solve this situation in favour of the customers.
“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.”
Earlier this, on 16 November, Genesis announced that the company has no exposure to the bankrupt FTX crypto exchange but the negativity in the crypto sector because of the FTX collapse, platform facing a significant negative impact, So suspended the withdrawal services from the platform.
The current situation is showing that the majority of the crypto projects, which were based on bad business models or interlinked with weak businesses, are moving toward bankrupcy.