troubled crypto trading firm Produce is reportedly struggling to raise fresh funds for its lending arm — and may be headed for bankruptcy.
according The company has tried to raise a minimum of $1 billion in new capital over the past several days, but appears to be having no luck, cited people with knowledge of the matter to Bloomberg.
A major crypto exchange has reportedly been involved in talks but without signing any deals, the report said:
Fund-raising efforts “included talks on a possible investment from a crypto exchange binance, […] But the funding so far has failed to materialize.”
as informed ofLast week, Genesis sought a $1 billion emergency loan before closing redemptions for customers. It acknowledged that it was facing a “liquidity crunch due to certain illiquid assets on its balance sheet”, and said it was “mainly running on deposits driven by retail programs and partners” and “leveraging the liquidity of institutional clients”. facing trial”. It did not manage to secure the required credit facility.
Inability to raise enough money can spell big trouble for the company. Quoting sources, the report said,
Origin is “warning potential investors that it may be required to file for bankruptcy if its efforts fail.”
However, according to a statement from a Genesis representative, a bankruptcy filing is not on the table at this time, as the company is still negotiating with creditors. The person was quoted as saying,
“We have no plans to file bankruptcy. Our goal is to resolve the current situation amicably without the need for any bankruptcy filings. Origin continues to have constructive talks with creditors.
as informed ofCrypto Lending Division of genesis businessGenesis Global Capital, which is related to digital currency group (DCG), the parent company of grayscale investmentbecame another victim of ftx fingering. Produce announced Last week that it was freezing redemptions on its lending product and would stop making new loans shortly after disclosing on November 10 that $175 million was locked in an FTX trading account.
Gemini looking for solutions
Many exchanges in the crypto industry work with Origin on various ‘earning’ and crypto savings programs that pay users a yield – and crypto exchanges Gemini is among them.
Shortly after Genesis suspended redemptions, Gemini said it would freeze redemptions on its Gemini Earned Yield products.
Bloomberg reported that,
“It’s a program left in limbo that has $700 million of customer money tied up in it, according to a person familiar with the matter.”
In a tweet on Tuesday, the Exchange shared An update on the situation, saying that,
Gemini is working with Genesis and DCG to “find a solution for Earnest users to redeem their funds.”
The exchange reiterated that the issue does not affect other Gemini products and services and that all customer funds are available for withdrawal.
The collapse of FTX has caused a swift and far-reaching contagion, affecting many companies in the space, while others claim they no longer have any exposure to the defunct exchange. You can read more about the FTX decline and its effects Here,
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learn more:
, FTX Latest – Crypto Prices Slip as Contagion Hits BlockFi, Genesis and Gemini, Hacker ID Known, Auditor and VC Fail, Class Action Lawsuit Filed
, Tether Says It Had No Exposure to Genesis Global and Gemini Earn, Crypto Experts Are Skeptical
, FTX-Owned Crypto Exchange Liquid Suspends Trading For Bankruptcy Proceedings – Here’s What Happened
, These are the countries most affected by the FTX collapse – find out why
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