Crypto firm Genesis says it has ‘no plans to file bankruptcy imminently’

Genesis, a digital assets financial services firm, may be in hot water as it looks to raise fresh capital for its lending unit or possibly facebankruptcy if it can't.

Genesis has no plans to file for bankruptcy in the near future, according to an email statement from the company. We want to resolve the situation without having to file for bankruptcy. Genesis is having constructive conversations with its debt holders.

According to The Block, Genesis cut its capital raise target from $1 billion to $500 million as it may be forced to file for Chapter 11.

Genesis was facing a crisis after the collapse of FTX, which resulted in abnormal withdrawal requests which have exceeded our current liquidity. Redemptions and new loan originations were temporarily suspended. The suspension is still in place.

The firm tried to assure users that the $175 million locked in its FTX trading account wouldn't affect its market-making activities.

At a time when the industry is facing extreme stress and volatility from the downfall of FTX, this news comes at a good time. The company stated at the time that an additional 130 affiliated companies, including FTX US and Alameda Research, also started the bankruptcy process.

As new information comes in, this story may be updated.