Crypto broker Genesis says needs more time to fix financial crisis

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Genesis Trading, a crypto broker, on Wednesday revealed that they need more time to fix their financial problems. Genesis halted its withdrawals in November 2022 after the FTX Group announced bankruptcy which shook the entire market. Genesis has been trying to come up with a solution for its troubled lending unit.

Interim Chief Executive Officer Derar Islim wrote in a letter that was seen by Bloomberg News, said, "While we are committed to moving as quickly as possible, this is a very complex process that will take some additional time. We believe we can arrive at a solution."

The interim CEO's note added that Genesis will continue to give you updates on meaningful developments, including any updates on timing.

Due to a liquidity crisis and failed attempts for raising fresh funds, one of the world's largest crypto exchanges, FTX announced voluntary insolvency by filing Chapter 11 in November last year to review and monetize assets for the benefit of all global stakeholders.

This also riled crypto markets with major cryptocurrencies facing sharp selling pressure for a brief period. However, that was not all, FTX's bankruptcy also fuelled a liquidity crunch in other exchanges like BlockFi and Genesis.

While BlockFi filed for bankruptcy in November itself, Genesis has been trying to avoid the same but instead suspended withdrawals.

Genesis has been trying to raise fresh capital for its lending unit, however, Bloomberg reported that some investors who approached for the lifeline have balked at the interconnectedness between Genesis and other related entities that are part of Barry Silbert’s Digital Currency Group.

Currently, Genesis continues to work with its advisors along with collaboration with Digital Currency Group and