Genesis is trying to find investors to get the company out of a liquidity crunch. However, Binance declined to participate in the investment call due to concerns about future conflicts of interest.
According to the Wall Street Journal, cryptocurrency company Genesis is still trying to raise cash. Genesis approached crypto exchange Binance to invest and bid on its loan book, according to people familiar with the matter.
Binance decided not to invest due to concerns that some of Genesis’ business activities could create a future conflict of interest.
“The company has no immediate plans to file for bankruptcy and its goal is to resolve the current situation in a consensual manner without requiring any bankruptcy filing. The company continues to engage in constructive dialogue with its creditors.”A Genesis spokesperson said
In earlier news, Genesis had warned potential investors that they could file for bankruptcy if they were unable to raise capital. And Genesis’ funding goal was halved from $1 billion to $500 million.
Genesis suffered hundreds of millions of dollars in losses during the market crash in May of this year and also reported a direct exposure of $175 million in losses on FTX last week.
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