Severely impacted by FTX’s bankruptcy, the crypto lending platform Genesis is reported to have a billion dollar hole in its accounts.
The shockwave from the bankruptcy of crypto giant FTX continues to take a heavy financial toll on companies that were linked to the now-failed crypto exchange.
The Wall Street Journal reports that it was able to view a confidential fundraising document that reveals that crypto lending platform Genesis was seeking a $1 billion emergency loan from investors.
Citing severe liquidity issues, Genesis needed to find this $1 billion credit facility by 10 a.m. last Monday.
Since then, Genesis has unfortunately been unable to find such a sum and has been forced to suspend withdrawals from its crypto lending platform.
The liquidity problems faced by Genesis are now putting other crypto platforms in trouble such as the American Gemini or the French Coinhouse which has been forced to suspend withdrawals for its crypto passbooks as well, click here to read our article.
The FTX bankruptcy proceedings also reveal many surprises about the practices that were going on within the crypto exchange and its subsidiary Alameda Research. Between the misuse of customer funds or the purchase of homes for FTX employees, FTX’s new CEO, John J. Ray III, says that in his entire career he has never seen “such a complete failure of corporate controls,” click here to read our article about it.
The billion dollar hole in Genesis’ accounts illustrates the extent of the financial disaster that is gradually affecting crypto companies that were intertwined in the FTX ecosystem.
A Bitcoin price that is resisting for the moment to these negative news, the BTC price is currently around 16775 dollars.