The lending company denounced the rumours that it is presently filing for bankruptcy. It claims it is currently in the process of resolving the issues as constructive conversations with creditors have begun, and it is hopeful the conversation will further relinquish every intent of filing for bankruptcy.
Read: US statesmen implore Fidelity to reappraise its Bitcoin offerings after FTX blow-up
The popular cryptocurrency lending firm has dismissed the growing speculation about its imminent bankruptcy filing plans; perhaps the company is unable to settle the $1 billion downfall perpetuated by the sudden meltdown of the crypto exchange giant, FTX. The firm has incessantly encountered complications generating funds for its lending division and informed investors that it is in the process of filing for bankruptcy, as covered in a report by Bloomberg on the 21st of November, referencing individuals conversant with the issue.
A Genesis spokesperson told Cointelegraph that the rumours were fabricated in order to cast the company in a negative light. They reiterated affirmatively that there were no plans by the firm to file for bankruptcy "imminently" and that as we speak, there are ensuing "constructive" discussions with creditors.
"We have no plans to file for bankruptcy imminently." Our goal is to resolve the current situation amicably, without the need for bankruptcy."Genesis continues to have constructive conversations with creditors."
Genesis revealed on the 16th of November that it had temporarily halted withdrawals, citing the unforeseen and unprepared downfall of FTX's collapse as the reason for its decision. Initially, the company disclosed on November 10th that it had approximately $175 million in dormant and inaccessible assets in its FTX trading account. Thus, this information comes as a surprise to many. However, this is news to keep tabs on as other events might follow.
For sure, this a good news to Genesis' customers who have been stuck and relegated into a mesh of confusion after the firm initially announced that its assets are stuck in the FTX exchange. With this, their hearts definitely will leap for joy and be rest assured that the situation which might seem a little complicated is about to be resolved and once it is resolved, every other thing will go back to normalcy.
