Genesis creditors organize in bid to forestall bankruptcy move: Bloomberg

Crypto firm Genesis Global Capital warned last week about a possible bankruptcy filing, and now some of its creditors are pursuing options in order to prevent such a move.

Law firms Proskauer Rose and Kirkland & Ellis are said to be involved in discussions with creditors, according to Bloomberg.

The company is trying to avoid a bankruptcy protection filing, Genesis told the news outlet. A letter penned last week by Digital Currency Group chief executive Barry Silbert also said the firm was pursuing options.

Genesis Trading was previously said to be seeking as much as $1 billion in emergency funding for its lending arm, though would-be investors like Binance ultimately bowed out. Genesis Global Capital previously halted withdrawals and new loan originations and disclosed it had some funds in FTX.

Genesis, which offers lending as well as brokerage services, is one of a number of companies impacted by the downfall of FTX as well as a broader downturn in the crypto market that began earlier this year.

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