Crypto Brokerage Genesis warns about bankruptcy if the funding fails

Digital-asset brokerage Genesis tries to find new funds for its credit unit in various ways. The company also plans to inform potential investors about the risk of bankruptcy. According to the insiders, this will happen if the company fails to raise the necessary funds.

Several persons in a private conversation on condition of anonymity said that last time the company was searching for a billion dollars to form new capital. Also, the Binance cryptocurrency exchange talked about possible investments, but so far, no funds have been received.

The necessity to raise funds was caused by the unexpected crash of the Binance cryptocurrency exchange. On November 10, it was reported that $175 million had been frozen in FTX accounts. After that, Genesis stopped paying.

A representative of the brokerage sent an email in which they declared that the company doesn’t plan to file for bankruptcy soon. The main goal now is to settle the issue without applying. Genesis and the creditors will continue mutual consultations.