Genesis Global Capital sought emergency financing of $1 billion, reports say

The OTC platform Genesis Global Capital requested access to a $1 billion credit line by the morning of November 14, citing liquidity shortages. About this, The Wall Street Journal reports, citing informed sources.

The request was filed before the suspension of crypto-lending operations afterthe collapse of FTX.

The firm failed to secure financing.

“Deposits continue to be withdrawn largely through Genesis’s retail programs and partners (for example, Gemini Earn), as well as institutional clients,” according to the document.

In July it emerged that the hedge fund Three Arrows Capital owed Genesis Global Capital $2.36 billion. Support for the latter was provided by its parent company Digital Currency Group, which undertook certain obligations.

In August, Genesis Global Capital chief Michael Moro left the company after seven years, including six as CEO. Together with him, one-fifth of the platform’s staff were laid off.

Recently, Nansen analysts discovered Alameda Research raised $1.6 billion in September 2021 from Genesis Global Capital backed by FTX. The decline in the value of the latter led to the insolvency of Sam Bankman-Fried’s firms.

Earlier, Multicoin Capital predicted the emergence of new casualties as a result of the FTX collapse.

Read ForkLog’s bitcoin news on our Telegram — crypto news, prices and analysis.