Crypto lender Genesis has no solution yet for withdrawal halts

Crypto lending level Genesis has informed its customers that its withdrawal frost is apt to past “additional weeks” amid efforts to stave disconnected a imaginable bankruptcy filing.

In a Dec. 7 missive to its customers shared by Genesis to Cointelegraph, interim CEO Derar Islim — who took the impermanent helm of the institution successful August — said it volition beryllium weeks for them to formulate a betterment program that could spot withdrawals reopened, stating:

“At this point, we expect that it volition instrumentality further weeks alternatively than days for america to get astatine a way forward.”

The missive besides stated that Genesis is “working successful consultation with highly experienced advisors” and are “evaluating the astir effectual way to sphere lawsuit assets, fortify our liquidity, and yet determination our concern forward.”

“All different Genesis entities stay afloat operational,” the missive added.

Related: Crypto lender Genesis allegedly owes $900M to Gemini’s clients: Report

Genesis Trading, the marketplace shaper and lending subsidiary of Digital Currency Group (DCG) archetypal flagged vulnerability to FTX successful a Nov. 10 Twitter thread, revealing that it had $175 million successful funds locked connected the FTX crypto exchange.

DCG attempted to bail retired Genesis with a $140 cardinal currency infusion that aforesaid day.

However, this didn’t look to beryllium capable to resoluteness its liquidity issues, arsenic Genesis Global Capital froze withdrawals connected Nov. 16 citing "unprecedented marketplace turmoil" caused by the illness of FTX, which led to “abnormal” levels of withdrawals that exceeded its liquidity.

On Nov. 21, the crypto lender denied plans to record for bankruptcy “imminently” aft failing to screen a reported $1 cardinal shortfall successful its equilibrium sheet.

Shortly aft connected Nov. 22, Genesis confirmed that the steadfast hired concern slope Moelis & Co for restructuring services arsenic a means to debar the Chapter 11 route.

In the letter, Genesis reaffirmed that it is “committed to being arsenic transparent arsenic possible” to those affected and that customers volition beryllium informed of “meaningful developments, including immoderate updates connected timing.”