• One of the biggest brokers in the market is Genesis.
• Genesis and Binance were in discussions on a prospective investment.
• Last week, Genesis' lending division halted redemptions.

According to a Bloomberg News article, digital asset brokerage Genesis is having trouble finding new funding for its loan division and has told potential investors that it may need to declare bankruptcy if its efforts are unsuccessful. 

The company, which has been struggling with a lack of funding ever since FTX declared bankruptcy earlier this month, is said to have approached Apollo Global Management and Binance to raise at least $1 billion (approximately Rs. 8,118 crore). The potential bankruptcy also highlights the ripple effects that FTX's collapse had on the larger crypto community, effects that are still being felt today. 

A Genesis official told Bloomberg that the company had no immediate plans to file for bankruptcy. 'Our aim is to reach a mutually agreeable solution to the current predicament without having to file for bankruptcy. 

Genesis is still engaging in fruitful dialogue with its creditors. After FTX, one of the biggest cryptocurrency exchanges in the world, abruptly collapsed, the lender experienced a liquidity crisis that sparked the rush for funding. 

After FTX's collapse and the collapse of Three Arrows Capital earlier this year, Genesis Global Capital, the lending division of Genesis Trading, last week temporarily halted redemptions and new loan originations. At that time, the parent company, Digital Currency Group, claimed that DCG's and its other wholly owned subsidiaries' business operations were unaffected. 

Genesis Trading claimed that $175 million (roughly Rs. 1,420 crore) in derivatives business was locked up on the FTX platform, so DCG provided an equity infusion of Genesis Trading worth $140 million (roughly Rs. 1,136 crore). 

Bitcoin's intraday decline extended to a low of $15,649 (roughly Rs. 12.7 lakh) in response to the news, which alarmed cryptocurrency investors. However, the token has since recovered some of those losses and is currently trading at $15,732. (roughly Rs. 12.77 lakh).