On Nov. 21, the crypto lender denied intentions to file for bankruptcy after it was claimed that it had failed to cover a $1 billion balance sheet deficiency.
According to Cointelegraph, bitcoin lending platform Genesis has warned its clients that the withdrawal hold is expected to endure “extra weeks” in an effort to avert a potential bankruptcy case.
In a letter to clients on December 7, Derar Islim, the company’s interim CEO who briefly took control in August, said it would take weeks to develop a recovery plan that may allow withdrawals to restart. Cointelegraph received this communication from Genesis.
The letter states that Genesis is “working in conjunction with highly skilled experts” and “considering the most effective approach to safeguard client funds, increase our liquidity, and ultimately move our business forward.”
“All other Genesis entities remain completely operating,” the letter added.
On Nov. 21, the crypto lender denied intentions to file for bankruptcy after it was claimed that it had failed to cover a $1 billion balance sheet deficiency.
Genesis said on Nov. 22 that, in order to avoid filing for Chapter 11, the business has hired investment bank Moelis & Co. for restructuring assistance.
In the letter, Genesis reaffirmed its “commitment to being as honest as possible” with individuals who would be impacted. It also pledged to keep consumers informed of “important developments, including any updates on time.”
