Crypto lender Genesis was seeking a $1 billion emergency loan just before suspending customer withdrawals on Wednesday.
Emergency loan
Citing a lack of liquidity as the reason, cryptocurrency lending platform Genesis tried to get an emergency loan to deal with the issue. However, the company appears to have not been successful, and all customer withdrawals were suspended on Wednesday.
Potential investors
According to a spokesperson, cited by a report in the Wall Street Journal, the company was having positive conversations with potential investors. They stated:
“Genesis had been exploring all possible options amidst the liquidity crunch resulting from the FTX news. After reviewing a number of options, we made the difficult decision to temporarily suspend redemptions and new loan originations in the lending business so that we can identify the best solution and outcome possible for clients.”
Exposure
The liquidity issues have at least some of their origin in that Genesis is said to
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