Genesis requested an emergency loan of $1,000,000,000

As a result of the bankruptcy of FTX, where most of the assets of the Genesis exchange were stored, the latter requested an emergency loan of $1,000,000,000. This is reported by the Wall Street Journal, citing a confidential document received by the Genesis crypto lender. The main motivation for investors to invest in Genesis is the share that they will receive if they help the company get out of a difficult situation.

The Wall Street Journal reports that before stopping the withdrawals, the crypto exchange tried to get such a $1,000,000,000 loan, but the attempts were unsuccessful. The document, obtained by the Wall Street Journal, claims "a liquidity crisis that was caused by the company's retail programs, in particular Gemini Earn, as well as certain illiquid assets on the Genesis balance sheet."

The cryptocurrency lender decided to offer potential investors the opportunity to obtain a controlling stake in Genesis, as well as a stake in one of the Digital Currency Group's subsidiaries. If investors did not like this option, then a minority stake in the holding company was offered as an alternative.

The list of subsidiaries of the Digital Currency Group holding includes the well-known publication CoinDesk, which covers the world of the cryptocurrency sphere, the mining company Foundry and the management company Grayscale.

A Genesis spokeswoman responded to the Wall Street Journal's statement about the document. According to her, the document was compiled over the weekend and by the time the publication of the Wall Street Journal had already lost its relevance. Genesis, she said, decided not to resort to the help of investors:

Genesis has been exploring all possible options in the face of the liquidity crunch caused by the FTX situation. After considering a number of options, we have made the difficult decision to temporarily suspend repayments and new loans so that we can make the best decision.

There are optimistic notes in the words of the Genesis spokesman. According to her statements, at the moment the crypto exchange is negotiating, which may be useful for the cryptocurrency platform. That being said, potential investors can still bolster Genesis' liquidity.

Earlier, the CEO of Genesis Derar Islim said that the cryptocurrency exchange decided to suspend the process of withdrawing funds from the platform, as it is temporarily unable to meet the needs of investors.

Earlier, we talked about the fact that the main reason for what happened is the fall of the American cryptocurrency exchange FTX. It was there that most of all Genesis assets were stored. Now Genesis representatives are trying to solve this problem in order to stay afloat and not become the next bankrupt exchange. The same fate awaited other cryptocurrency platforms, Maps.me and Oxygen, due to the collapse of FTX. The companies made a joint announcement in which they told about the lost 95% of their assets, which were stored on the FTX exchange. If you missed this material, then we invite you to familiarize yourself with it .