Genesis on the verge of bankruptcy after FTX? keep an eye on who will be the next ‘crypto domino’

Bitcoin price falls to a two-year low after major cryptocurrency lending platform Genesis shows bad signs AND could go bankrupt according to another case, reflecting the domino effect in the FTX crisis.

Bloomberg News and The Wall Street Journal The report cited relevant news sources as stating: Major cryptocurrency lending platforms such as Genesis is struggling to get funding from multiple sources by negotiating with both Binanza which is the #1 largest cryptocurrency trading platform in the world, to a giant investment management firm like Global management of Apollo To raise capital at least 1,000 million US dollars (about 3.6 billion baht) to support liquidity.

However, Binance, led by CEO Changpeng Zhao (CZ), has declined to invest. justifying the risk that it could cause a conflict of interest

Genesis is one of the companies affected by the company’s bankruptcy filing. FTP extension The former cryptocurrency trading platform no. 2 in the world, due to the impact of cryptocurrency market sentiment, has led to an unusually high flow of withdrawals from Genesis. Until the company had to announce the suspension of withdrawals last week.

The situation has led to a whirlwind of rumors that Genesis could be the next Domino to go bankrupt after FTX. bitcoins Heavy fall in the early morning today. Until reaching a 2-year low at $15,480/BTC and then gradually recovering shortly after. It rose to around $15,819/BTC around 11:30 am.

A Genesis representative confirmed this to Bloomberg The company has no plans to file for bankruptcy any time soon and aims to resolve the issue now by negotiating with its creditors and investors. without going into bankruptcy proceedings

Genesis is one of FTX’s creditors, having made numerous loans to Research Alameda which is a subsidiary of FTX, while previously The company has already undergone another round of loans of $2.4 billion (about 87 billion baht) to hedge funds. Capital of the three arrows During the Terra LUNA crisis

The impact and stagnation of the cryptocurrency market this year has made things worse. Causing the company to announce 20% layoffs in August.

In the third quarter of this year, Genesis lent a total of $2.8 billion, a nearly fourfold decline from the same quarter last year. This occurred during a booming market and resulted in a high lending of $11.1 billion.

BlockFi could be the first domino to fall.

Previously, decentralized cryptocurrency lending platforms BlockFi is another company that reported Also at risk of bankruptcy. Because it suffered heavy losses from FTX, it had to announce a suspension of withdrawals earlier. Even at the risk of failure. Due to the heavy losses suffered by FTX, it had to announce the suspension of withdrawals in advance.

The Wall Street Journal reported, citing relevant sources, that BlockFi, a decentralized cryptocurrency lending platform, or DeFi, could be the first domino to fall on the cryptocurrency scoreboard. because he is preparing to enter the process He has already “filed for bankruptcy” under Chapter 11 (reorganization filing) and will soon announce a mass “layoff” of employees.

It was also reported that BlockFi negotiated the help of Binance’s CZ. But no details have been revealed. and until now There is no progress on BlockFi’s solution yet.

Source: https://www.bloomberg.com/news/articles/2022-11-22/bitcoin-s-slide-pauses-in-wait-for-next-domino-to-fall-after-ftx

https://www.coindesk.com/business/2022/11/21/genesis-bankruptcy-jitters-send-bitcoin-to-fresh-low/

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