Crypto lender Genesis sought out an emergency loan of $1 billion from investors in the wake of FTX’s collapse and ensuing bankruptcy but never got the funds it requested, The Wall Street Journal reported Nov. 17.
The loan request came before the company sent out a notification to clients earlier this week that it would be suspending redemptions.
Citing a document it reviewed, the WSJ noted that Genesis sought the funds by Nov. 14 because of a “liquidity crunch due to certain illiquid assets on its balance sheet.”
The document reportedly explained an “ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity.”
A Genesis spokeswoman told the Journal that the confidential document was no longer current and noted that the company is having “very positive conversations” with potential investors to recoup liquidity.
Genesis announced Nov. 16 that its crypto-lending unit was halting all customer withdrawals.
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