WSJ: Conflict of interest will prevent Binance from saving Genesis Trading

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Binance exchange refusedprovide financial assistance to Genesis Global Capital, which is struggling with a liquidity crisis and trying to raise money to continue operations.  

According to The Wall Street Journal(WSJ) Crypto lender Genesis continues to seek funds to maintain operations. The company turned to the world's largest crypto exchange for financial support. However, as the WSJ learned from one of the people familiar with the matter, Binance decided not to invest in the project, fearing that the Genesis part of the business could create a conflict of interest in the future.

Late last week, crypto lending platform Genesis said it was temporarily suspending processing of customer withdrawal requests and would begin seeking new sources of liquidity.

Genesis faced massive withdrawals following the collapse of cryptocurrency exchange FTX. The company initially requested
emergency loan of $1 billion, and onlythen informed clients that it was suspending repayments and issuing loans. In addition to Binance, Genesis also applied for a line of credit from private equity giant Global Management, but it is not yet known whether the parties have reached an agreement.

Now the crypto lender is rejecting any reports of possible bankruptcy%

“We have no plans to apply forbankruptcy in the near future. Our goal is to resolve the current situation based on consensus without filing for bankruptcy. Genesis continues to engage in constructive discussions with creditors."

Acting CEO Derar Islim said Genesis would unveil a plan to get the company out of the crisis this week.

In November, Binance CEO Changpeng Zhao announced
tweeted that his exchange is forming a recovery fund to help strong cryptocurrency projects that are facing liquidity shortages.