Genesis’ comments come days after it halted customer withdrawals due to financial difficulties.
Cryptocurrency lender Genesis has denied that it is on the verge of filing for bankruptcy, days after it halted payments in response to the collapse of crypto exchange FTX.
Genesis said on Monday it had “no plans” to make any immediate refunds and wanted to deal with the problem “jointly”.
“We have no plans to issue a refund in the near future,” a spokesperson told Al Jazeera in an emailed statement. “Our goal is to resolve the current situation without the need to file for bankruptcy. Genesis continues to negotiate constructive terms with creditors.”
Bloomberg News previously reported that Genesis, which has offices in New York City, London and Singapore, was having trouble raising new capital for its lending division and had warned investors that it could default on debt if it did not raise additional funds.
The report, which cited people familiar with the matter, said the crypto-currency bank has spent the past few days trying to raise at least $1bn in new capital.
Genesis sought funding from crypto exchange Binance, but the latter rejected the proposal due to a conflict of interest, The Wall Street Journal reported on Monday, citing people familiar with the matter.
Genesis has also partnered with private equity firm Apollo Global Management to raise funds, according to a Wall Street Journal report.
Al Jazeera contacted Apollo and Binance for comment.
Genesis Global Capital, one of the largest crypto lenders, last week suspended customer withdrawals due to what it said was a lack of funds caused by a surge in withdrawal requests following the Sam Bankman-Fried FTX push.
The collapse of FTX, the third largest crypto market, earlier this month shocked the crypto industry, prompting accusations of fraud and mismanagement and drawing comparisons to the 2008 collapse of Lehman Brothers.
In an interview with Vox last week, FTX’s founder, Sam Bankman-Fried, who stepped down as CEO earlier this month, said he regretted the actions he took to secure bankruptcy protection and criticized regulators for failing to protect customers before they appeared to be getting their money back. comments.
Bankman-Fried and many famous people who promoted FTX are currently facing a $11bn lawsuit from investors.
The US Department of Justice and the Securities and Exchange Commission say they are also investigating whether Bankman-Fried or his company violated securities laws.