crypto News WSJ: Binance refused to save Genesis Trading

WSJ: Binance refused to save Genesis Trading

WSJ: Binance refused to save Genesis Trading

Binance Bitcoin-Torge will not invest in Genesis Trading against the background of searching for an emergency funding platform in the amount of $ 1 billion. This is reported by The Wall Street Journal.

The reason for the refusal was the potential conflict of Binance interests with the business model of Digital Currency Group (DCG) Barry Silbert, the source of the publication said.

Genesis also tried to negotiate financial support with the Apollo Global Management Apollo Globlo Management Management.

On November 14, a cryptolending company requested emergency access to a credit line of $ 1 billion, citing a lack of liquidity. The request was submitted before suspension of withdrawal of funds and issuing new loans after FTX collapse.

According to The Block, Genesis reduced the target amount of funding to $ 500 million. Without additional cash injection of the company, the bankruptcy is potentially threatened.

DCG does not want to leave a part of the venture portfolio for the sake of saving the “daughter”. Also, the maternal structure does not intend to sell Grayscale Investments, which is an important source of income.

“In the near future we have no plans to submit bankruptcy proceedings. Our goal is to solve current problems at the level of consensus. Genesis continues to conduct constructive negotiations with creditors, ”commented in a landing company.

Recall that against the backdrop of Genesis frosts of credit operations and Grayscale failure to disclose reserves in the community, doubts arose of the stability of DCG itself.

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