March 4, 2024

WSJ: Genesis Requests $1 Billion Emergency Loan

Article Reading Time:
1 min.

WSJ: Genesis Requests $1 Billion Emergency Loan

Available to Wall Street Journal(WSJ) turned out to be a confidential document from the crypto lender Genesis, in which he appeals to potential investors for financial assistance secured by a share in the business.

According to the WSJ, before suspendingwithdrawals, cryptocurrency lending company Genesis unsuccessfully attempted to obtain a $1 billion emergency loan. The document cites "a liquidity crisis caused by the company's retail programs, particularly Gemini Earn, as well as certain illiquid assets on Genesis's balance sheet."

The crypto lender offered potentialinvestors have the opportunity to obtain a majority stake in Genesis, a stake in one of Digital Currency Group's subsidiaries, or a minority stake in a holding company. As a reminder, Digital Currency Group's subsidiaries include cryptocurrency publication CoinDesk, mining company Foundry, and asset management company Grayscale.

Commenting on the WSJ publication, a Genesis spokeswoman said that the document was prepared over the weekend and is no longer relevant.

“Genesis has explored all possible options inconditions of the liquidity crisis caused by the FTX situation. After considering a number of options, we have made the difficult decision to temporarily pause repayments and new loans so we can make the best decision,” the spokeswoman said.

She added that the firm is in "very positive discussions" with potential investors to bolster its liquidity position.

Last Wednesday, Genesis interim chief executive Derar Islim said the company was unable to meet customer withdrawal requests.