Binance CEO Plans To Acquire Genesis Loan Book, Is The Firm Under Trouble ?
The FTX-Alameda crisis has spread around other projects like Genesis Trading, Gemini and BlockFi. As a result, Genesis has halted their withdrawals while Gemini went offline and BlockFi is preparing to file bankruptcy.
Genesis Trading, a cryptocurrency market operator and financing company, has decided to cease its new loan sanctions and withdrawals.
Our #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.— Genesis (@GenesisTrading) November 16, 2022
Recently, Genesis announced that its derivatives business had nearly $175 million in locked funds in its FTX trading account. However, Genesis has stated that it currently has no relationship with FTX or Alameda Research.
Binance To Acquire Genesis Loan Book
Meanwhile, there are speculations that Binance CEO, Changpeng Zhao is looking forward to acquiring Genesis’ loan book. The reports claim that CZ is going through Genesis balance sheet and is seeking for more details. As per Q3 2022 report, Genesis Trading has active loans worth $2.8 billion.
One of the sources claims that this offer by Binance is most likely to be rejected by Genesis’ parent company, Digital Currency Group (DCG) and nearly $2 billion is needed to be floated.
Last week, after Binance announced that it is planning to acquire FTX, the exchange was pointing towards its balance sheet which was fraudulent. And as FTX collapsed just a few days after the announcement. Now, as CZ announces plans to acquire Genesis loan book, the speculation that Genesis tumbling down grows even stronger.
In July, after Three Arrows Capital filed for bankruptcy, the firm was hit by severe liabilities of hundreds of millions of dollars, but later it was claimed that the firm had recovered . On the other hand, recently, Genesis CEO Derar Islim assured creditors over the call that the firm is looking for solutions and complete details will be revealed next week.Source