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 pause its new lending restrictions and withdrawals.
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 is speculation that Binance CEO Changpeng Zhao is looking to acquire Genesis’ loan book. The report claims that CZ is going through the Genesis balance sheet and is seeking more details. As of its Q3 2022 report, Genesis Trading has $2.8 billion in active loans.
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 plans to acquire FTX, the exchange was pointing to its balance sheet as being fraudulent. And just days after the announcement FTX collapsed. Now, as CZ has announced plans to acquire the Genesis loan book, speculation about a Genesis collapse is getting 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.
