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Genesis Global Capital, a cryptocurrency lending company, has hired a reorganization counsel named Moelis & Company to consider all possibilities, including but not restricted to a prospective bankruptcy.
Genesis Hired Moelis & Company
According to a November 22 New York Times report, the business has hired financial firm Moelis & Company to investigate options, however, individuals with knowledge of the situation have emphasized that no financial decisions have been taken and that it is still possible for the business to prevent declaring bankruptcy. It's significant to observe that Moelis & Company was one of the companies hired by Voyager Digital after it stopped accepting deposits and withdrawals on July 1 to investigate alternative strategies. Voyager Digital filed for Chapter 11 bankruptcy a few days later in the Southern District Court of New York as part of a restructuring strategy that would gradually return quality customer service.
Unpaid Debts on the Balance Sheet
Genesis is reportedly looking to raise $500 million to $1 billion from businesses to make up for a gap that was eventually caused by extraordinary market turbulence and the demise of cryptocurrency exchange FTX. In a study published on November 22, the struggling lending company was found to have $2.8 billion in unpaid debts on its balance sheet, with over 30% of those loans going to associated parties, including its mother company Digital Currency Group and its subsidiary and lending unit, Genesis Global Trading. Digital Currency Group owed $575 million to Genesis Global Capital, according to a letter that has lately been making the rounds and was written by its CEO, Barry Silbert.