United States-based cryptocurrency brokerage Genesis is seeking means to avoid bankruptcy after recently it was reported that the firm’s creditors are holding meetings after meetings with restructuring lawyers.
The report claimed that law firms Proskauer Rose and Kirkland & Ellis are being involved in the process.
“We’ve begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG, to agree on a solution that shores up our lending business’ overall liquidity and addresses clients’ needs,” Genesis’ interim chief executive Derar Islim told clients in a letter.
United States regulators are reportedly investigating the brokerage.
Genesis Trading suspended customer redemptions in November 2022, citing the crash of FTX, where the former’s derivatives business has USD 175 million in locked funds.
Venture capital company Digital Currency Group, which heads Genesis Trading and Grayscale, also owes USD 575 million to Genesis’ crypto lending arm.
The disturbing news comes amid two other crypto exchanges, BlockFi and Bitfront, filing for bankruptcy in the United States. Hong Kong-based crypto firm Atom Asset Exchange has suspended its social media pages, after halting customer withdrawals.