Genesis Trading would be far from saved, especially as new legal charges could weigh against it.
The Genesis Trading team breaks the silence
After nearly a month of silence, interspersed with trying to avoid bankruptcy, Genesis Trading management has finally come out of their silence to share their progress. Contrary to what some creditors might have expected, the lending company would not yet be done with its difficulties.
In a letter to its clients published by Bloomberg, the CEO of Genesis Trading announced that his company was still looking for funds that would save it from having to stop its activity. However, the management group continues to claim that the bankruptcy is not yet a reality. It should therefore speak again in early 2023, having benefited from the necessary time to reach a decision.
We expect it will take weeks instead of days to find a solution. In consultation with highly experienced advisors and in close collaboration with our owner, Digital Currency Group, we assess the most effective way to preserve clients’ assets, strengthen our liquidity and ultimately grow our business.
Excerpt from the letter sent by Genesis Trading to its customers
However, the FTX case may sink the company
If Genesis Trading suffers from FTX’s fall, it may not be the end of its troubles. In fact, Sam Bankman-Fried is accused of manipulating the price of certain cryptocurrencies, most notably USTerra. According to its creator, Do Kwon, Genesis would have participated in the unveiling by selling its tokens to the former billionaire.
The lending company, although already very run down, may therefore have to go to court over this affair, while its collusion with the highly controversial SBF could pressure the public to turn away from it.
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