Near-bankrupt Genesis ‘is working’ to preserve clients’ assets

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Blockchain
Near-bankrupt Genesis ‘is working’ to preserve clients’ assets

To strengthen liquidity, striving crypto exchange Genesis has announced ongoing work to preserve client assets. It might take weeks to come up with a plan.

After locking up customers’ funds for about three weeks, Genesis Global Capital is reportedly working on preserving clients’ assets. According to a client letter cited by Reuters, the struggling crypto lender affirmed that it would require “weeks rather than days” to devise a concrete plan.

Genesis wrote:

“[We are] working in consultation with highly experienced advisors and close collaboration with our owner, DCG; we are evaluating the most effective path to preserve client assets, strengthen our liquidity, and ultimately move our business forward.”

Genesis, in a letter to its clients

The company, however, keeps claiming that other services are “fully operational.”

Crypto lending platforms such as Genesis have seen massive growth in recent years. They attracted retail customers with enticing rates in exchange for their crypto deposits. Genesis experienced significant expansions during this period. In 2021, it extended $130.6 billion in cryptocurrency loans and traded $116.5 billion in assets. By Q3 2022, the platform had approximately $3 billion in total active loans.

Gemini’s struggles started last month with the fall of FTX. On November 16, the platform’s lending arm, Genesis Global Capital, halted customer withdrawals. Last week, the DCG-owned tech company announced that it was trying not to file for bankruptcy.

According to recent data, the Genesis group owes Gemini customers approximately $900 million in digital assets they cannot access due to the platform’s lockdown.

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Tolulope Ogundalu

Tolulope is an expert crypto content writer, blockchain content analyst, and DeFi writer with over 5 years+ of progressive content development experience working with several crypto exchanges, blockchain-based companies, and DeFi startups.