- Genesis Global Capital customers face a wait of weeks rather than days to see if they will get their trapped funds back
- Customers were informed this week that the restructuring process will be a lengthy one
- Genesis froze withdrawals last month following the collapse of FTX
The withdrawal freeze for Genesis Global Capital users will last weeks rather than days, according to interim CEO Derar Islim, while it tries to come up with a solution to its liquidity crisis. Genesis Global Capital froze withdrawals three weeks ago in the wake of the collapse of FTX, less than a week after it had said that the latter’s failure would not have an impact on its business. Genesis is working with restructuring advisers to find the best way forward for the company, but Islim has warned that there would be no quick fix.
Genesis Working with Restructuring Adviser
Genesis Global Capital, the lending arm of the sprawling Genesis company, has made headlines over the past few weeks after it appeared to have falsely reassured customers of its standing in the wake of the FTX collapse, before it was publicized that the company needed a $1 billion bailout to remain solvent. This was later reduced to $500 million.
In the middle of this it hired Moelis & Company to try and rescue the company, and in an update to customers, seen by Cointelegraph, Islim revealed that “we anticipate that it will take additional weeks rather than days for us to arrive at a path forward.” Islim added that Genesis is “working in consultation with highly experienced advisors” and is “evaluating the most effective path to preserve client assets, strengthen our liquidity, and ultimately move our business forward.”
Other Aspects of Genesis “Fully Operational”
Genesis Global Capital, which presumably wishes it had not loaned the now defunct crypto fund Three Arrows Capital over $2.3 billion earlier this year, is the only aspect of the Genesis empire at risk, with all other Genesis entities remaining “fully operational”, according to Islim.
As of September 2022 had $2.8 billion in total active loans, according to the company’s website.
