--- title: "With collapse of FTX, Genesis alerts investors to the possibility of bankruptcy without new funding." description: "Genesis has been working for several days to find investors in order to raise $1 billion (approximately Rs. 8,118 crore) in financing." author: "Muskan Singh" published: 2022-11-23 canonical: https://www.mindstick.com/news/2413/with-collapse-of-ftx-genesis-alerts-investors-to-the-possibility-of-bankruptcy-without-new-funding category: "cryptocurrency" tags: ["jobs", "crypto exchange", "cryptocurrency"] reading_time: 2 minutes --- # With collapse of FTX, Genesis alerts investors to the possibility of bankruptcy without new funding. - [One of the biggest](https://answers.mindstick.com/qa/51358/what-was-one-of-the-biggest-issued-debated-in-the-1970s) 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](https://www.mindstick.com/developersection/news) article, **digital asset brokerage Genesis** is [having trouble](https://answers.mindstick.com/qa/50524/how-to-fix-iphone-8-that-s-overheating-and-having-trouble-turning-on) finding new funding for its loan division and has told potential investors that it may need to declare [bankruptcy](https://www.mindstick.com/blog/299494/3-common-alternatives-to-avoid-chapter-7-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](https://www.mindstick.com/articles/23490/tips-for-better-cash-flow-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](https://yourviews.mindstick.com/view/87457/khalistan-community-a-threat-to-india), 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**](https://www.mindstick.com/news/1717/loss-of-8-78-million-worth-of-cryptocurrency-in-hack-attack-crema-finance) 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](https://www.mindstick.com/news/1151/binance-turkey-unit-slapped-with-try-8-million-for-violations-of-digital-currency-laws) Group, claimed that DCG's and its other wholly owned subsidiaries' [business operations](https://www.mindstick.com/blog/306817/how-microsoft-platforms-are-transforming-everyday-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**](https://www.mindstick.com/news/1717/loss-of-8-78-million-worth-of-cryptocurrency-in-hack-attack-crema-finance) 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).** --- Original Source: https://www.mindstick.com/news/2413/with-collapse-of-ftx-genesis-alerts-investors-to-the-possibility-of-bankruptcy-without-new-funding Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.