FX.co ★ FTX aftershock to cause Genesis meltdown

By the year-end, there could be one more bankrupt crypto exchange. Following the FTX collapse, the Genesis crypto broker may face a liquidity crunch. Genesis came into the spotlight when it became known about the company’s problems. Markets instantly reacted to the news, and the fact that the firm had close ties to the now-bankrupt FTX exchange only fanned the flames. Bloomberg, citing trusted sources familiar with the situation, predicts the imminent bankruptcy of Genesis. Serious liquidity issues and ties to the infamous FTX are clear signs the company is in trouble. Genesis is currently seeking an emergency loan of $1 billion from investors. At the same time, potential investors are warned that the firm may need to file for bankruptcy if its efforts end up in vain. Genesis, however, did not publicly confirm this information but reassured clients it would find a way out of the situation.

According to Bloomberg, Genesis is also in talks with Binance. Yet, the crypto exchange gave no comments about that. On November 11, it became known that FTX filed for bankruptcy in the United States after facing a liquidity crisis. Its founder, Sam Bankman-Fried lost his fortune of $16 billion and stepped down as the company’s CEO.