Crypto brokerage Genesis is struggling to raise new funds for its lending unit and has warned potential investors that it may need to file for bankruptcy, while Binance turned down the request for investment.
Genesis has spent the last few days looking for at least $1 billion in new capital, which has now slashed its target to $500 million.
This included discussions about potential investment from the cryptocurrency exchange Binance. Last week, there were reports that Binance CEO CZ was considering acquiring Genesis’ loan book.
According to reports, Binance decided not to invest because it was concerned that some of Genesis’s business might create a conflict of interest down the road.
Genesis also approached Apollo Global Management, a private equity firm.
However, the crypto lender stated that it has no immediate plans to declare bankruptcy, despite the fact that the collapse of FTX forced it to suspend customer redemptions.
“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors,” a Genesis spokesman said.