WSJ: Binance declines to rescue Genesis Global Capital

The Bitcoin exchange Binance will not invest in Genesis Global Capital as the crypto-lending platform seeks emergency funding of $1 billion. The Wall Street Journal reports.

The reason for the decision was a potential conflict of interest between Binance and the business model of Barry Silbert’s Digital Currency Group (DCG), a person familiar with the matter said.

Genesis also sought financial backing from Apollo Global Management, the alternative investment manager.

The crypto-lending firm on November 14 requested emergency access to a $1 billion credit line, citing a liquidity crunch. The request was filed before the suspension of withdrawals and the issuing of new loans afterthe collapse of FTX.

According to The Block, Genesis has cut its funding target to $500 million. Without additional cash injections, the company faces potential bankruptcy.

Sources tell The Block crypto trading firm Genesis—which has been struggling to raise emergency capital to shore up its lending unit’s liquidity profile—has slashed its raise target from $1bn to $500 million. As Bloomberg reported, it faces potential bankruptcy w/o funding.

— Frank Chaparro (@fintechfrank) November 21, 2022

DCG не желает ради спасения «дочки» расставаться с частью венчурного портфеля. Также материнская структура не намерена продавать Grayscale Investments, которая является важным источником дохода.

«В ближайшее время у нас нет планов подавать заявление о банкротстве. Наша цель — решить текущие проблемы на уровне консенуса. Genesis продолжает вести конструктивные переговоры с кредиторами», — прокомментировали в лендинговой фирме.

Concerns about the stability of DCG have arisen in the community Concerns about the stability of DCG.

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