In order to avoid bankruptcy, Genesis seeks help from a restructuring expert.



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Genesis Global Capital, a cryptocurrency lending company, has recruited a restructuring specialist to avoid going bankrupt. For help, the company has enlisted the services of investment bank Moelis & Company.

Before diving into this piece, you may want to catch up on some relevant stories, like how the CFTC is pushing FTX whistleblowers to act and is advocating for cryptocurrency regulation and the launch of the USDA Cardano stablecoin in early 2023.

After temporarily halting withdrawals and deposits to investigate "strategic options," Voyager Digital surprisingly sought assistance from Moelis & Company. Voyager Digital filed for Chapter 11 bankruptcy a few days later, so things didn't work out.

In spite of this, insiders insist that no financial choices have been made and that Genesis may yet escape bankruptcy.

It was reported yesterday that Genesis would have to declare bankruptcy after Binance declined to invest in the company. After suffering losses as a result of exceptional market instability and the unexpected collapse of FTX, Genesis is looking to raise about $500 million from investors to make up for those losses.

But a representative for Genesis claimed the company had no "imminent" intentions to file for bankruptcy. We'd want to reach an amicable solution to the present impasse so that no one has to resort to filing for bankruptcy. Genesis' representative said that the company is still having fruitful discussions with its creditors.

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