Genesis Global Capital Has Hired Investment Bank Moelis to Explore Options: New York Times

Genesis Global Capital has hired investment bank Moelis & Company to explore options including a potential bankruptcy, The New York Times reported, citing three people familiar with the situation.

There haven’t been any final decisions made and it is still possible for the company to avoid a bankruptcy filing, the report said.

Genesis had spent much of November scrambling to raise fresh capital or reach a deal with creditors thanks to its exposure to collapsed crypto exchange FTX. The company’s institutional lending unit last week was forced to suspend redemptions and new originations. Genesis also previously disclosed that its derivatives unit had about $175 million in locked funds in its FTX trading account. As a result, parent company Digital Currency Group (DCG) opted to strengthen Genesis’ balance sheet with an equity infusion of $140 million.

Genesis several months ago reportedly suffered losses of hundreds of millions of dollars due to loans made to failed crypto hedge fund Three Arrows Capital.

DCG is also the parent company of CoinDesk.

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