Genesis Claims More Time is Needed For its Crypto Lending Crisis
Genesis, a troubled crypto lender, informed its clients in a letter that it is currently working on determining the most effective course of action.
Valentin
March 11, 2023
Crypto lender Genesis informed its clients that it is still working towards finding a solution for its troubled borrowing and lending unit, but that it will require more time to do so.
Interim CEO Derar Islim stated in a letter to clients that progress has been made in developing new business plans for clients, including cost reductions and “driving efficiencies”, and that the company’s derivatives and spot trading businesses are fully operational.
However, Islim added that the process of finding a solution is complex and will take additional time. Genesis Global Capital, the lending business of Genesis Trading, was forced to halt withdrawals and new loan originations in November due to issues with the FTX crypto exchange, and has warned of the possibility of bankruptcy.
The company previously indicated that a solution could take several weeks to implement.
“We need more time”
In his letter to clients, Islim stated that Genesis is continuing to work with advisors and Digital Currency Group (DCG) to assess options for preserving client assets and moving the business forward.
However, DCG and its subsidiaries, including Gemini, have faced criticism recently, with Gemini’s Earn program being frozen since November and co-founder Cameron Winklevoss accusing DCG head Barry Silbert of “bad faith stall tactics” and misusing funds in a tweet.