Genesis CEO asks for more time to resolve crisis

In a letter to clients, Genesis Global Trading’s interim CEO Derar Islam said it will take time for the company to sort out its complex financial problems.

In November, Genesis Global Trading, a cryptocurrency lender and brokerage, temporarily suspended its extraction. The company’s interim CEO said it needed more time to resolve its financial issues.

After the FTX Collapse

Two months after freezing its withdrawals, Genesis Global Trading issued a letter saying it needed more time to work through its financial situation.

The FTX bankruptcy resulted in increased volatility in the cryptocurrency market. It also triggered a liquidity crunch on various exchanges such as Genesis and Blockfi. Fast forward to November 2022, BlockFi filed for bankruptcy.

On the other hand, Genesis is trying to avoid similar issues even after suspending withdrawals.

Following the announcement, various enthusiasts took to Twitter to express their concerns. One of them was Zhu Su, who as outlined That SBF repaid a $2.5b loan to Barry in August using FTX depositor money. david bailey wrote“Didn’t see this coming… So Genesis has $2.5b in FTX client funds!”

Notably, the interim CEO of Origin said that the company will continue to update its users on important developments.

leading the way

According to reports, some investors interested in participating in the lending unit of Genesis have rejected the company’s efforts to raise capital. He cited concerns about the interconnectedness of the platform and other related entities, which are part of Barry Silbert’s Digital Currency Group.

As a result, Genesis is working with its advisors to find ways protected its customer property. It also partnered with the Digital Currency Group to look into other options.

In his note, Islam says that Origin continues to provide its customers with the white-glove service it has always provided. The company also appreciates their patience as they work towards an equitable resolution.

Following the collapse of FTX in November 2022, Genesis froze its client’s funds. In December, the company released a statement saying that it would come up with a solution that they could have within a few “weeks” instead of days.

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