Crypto lending firm Genesis Global Capital has reportedly hired a restructuring expert to prevent potential bankruptcy. The firm has tapped investment bank Moelis & Company to explore all possible options that can keep it from worsening its current predicament.
Surprisingly, Moelis & Company was also one of the firms involved in aiding Voyager Digital after it suspended withdrawals and deposits in order to explore “strategic alternatives.” It didn’t end well as days later, Voyager Digital filed for Chapter 11 Bankruptcy.
However, people familiar with the situation have stressed that no financial decisions have been made and that it is still possible for Genesis to avoid a bankruptcy filing.
Yesterday, the news broke out that Genesis may need to file bankruptcy while Binance turned down the request for investments. Genesis is seeking around $500 million from investors to cover the losses that occurred due to unprecedented market turmoil and the sudden collapse of FTX.
On the other hand, a Genesis spokesperson said that it had no “imminent” plans to file for bankruptcy. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors,” stated the spokesperson.
