The Wall Street Journal (WSJ) has obtained a confidential document from crypto lender Genesis, in which he appeals to potential investors for financial assistance secured by a stake in the business.
Crypto lending company Genesis unsuccessfully attempted to secure a $1 billion emergency loan before suspending withdrawals, the WSJ reports. on the balance sheet of Genesis.
The crypto lender offered potential investors the opportunity to obtain a majority stake in Genesis, a stake in one of the Digital Currency Group’s subsidiaries, or a minority stake in a holding company. Recall that the subsidiaries of the Digital Currency Group include the cryptocurrency publication CoinDesk, the mining company Foundry and the management company Grayscale.
Commenting on the WSJ publication, a Genesis spokeswoman stated that the document was prepared over the weekend and is no longer relevant.
“Genesis has been exploring all possible options in the face of the liquidity crunch caused by the FTX situation. After considering a number of options, we have made the difficult decision to temporarily suspend repayments and new loans so that we can make the best decision,” the spokeswoman said.
She added that the firm is in “very positive talks” with potential investors to bolster its liquidity.
Last Wednesday, Genesis interim chief executive Derar Islim said the company was unable to meet customer withdrawal requests.