HomeCryptoBinance wants to save Genesis: an attempt to salvage the industry

Binance wants to save Genesis: an attempt to salvage the industry

CZ, CEO of Binance, is in a strategic position and, in an attempt to salvage what can be saved, is trying to restore the fortunes of Genesis. 

Binance at the helm: next target? Genesis

Genesis Global Capital, the lending business of Genesis Trading is just the latest company to fall victim to the consequences of the FTX bankruptcy

Digital Currency Group, the parent company of Genesis explained that the halt in operations on the platform and what happened next was the natural consequence of:

“extreme market dislocation is of the industry’s loss of confidence.”

To protect and secure itself, the company applied for a $1 billion flash loan, confirming speculation that without external liquidity intervention it could face bankruptcy in the wake of FTX. 

According to reports in The Wall Street Journal, Genesis has reportedly made a formal application to the main exchange to invest in Genesis effectively saving it from bankruptcy. 

The same application was also reportedly made to private equity firm Apollo Global Management:

“Binance has decided not to invest, fearing that some of Genesis’ assets could create a long-term conflict of interest, according to one of the people familiar with the matter.”

Changpeng Zhao, recently revealed that the exchange was setting up a recovery fund to help projects during a liquidity crisis

However, Genesis wants to do all it can to regain the trust of its users and currently does not want to file for Chapter 11 by moving toward an amicable settlement:

“We have no plans to file for bankruptcy any time soon. Our goal is to resolve the current situation by mutual consent without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

Binance is also facing its own problems

Meanwhile, there are quarrels coming for Binance, which Bloomberg reports is under investigation by Singapore regulators for possibly violating payment services rules.

The news is also reported by the popular crypto news aggregator Bitcoin Archive:

A series of suspicions had kicked off the FTX debacle and the scenario is repeating itself, but with due differences, Binance and Sam Bankman-Fried‘s creatures are by no means on the same level. 

Binance is the number one platform for buying and selling digital currencies and no liquidity problems are on the horizon. Also, Changpeng Zhao is devising a fund that can act as a lifeboat for the liquidity of crypto-related companies that run into trouble. 

In addition, news leaked from Bloomberg in recent days, later shared by Bitcoin Archive, that Binance has met with Emirati investors in Abu Dhabi for the Recovery fund for crypto companies affected by liquidity problems:

The news was promptly denied by Zhao himself, who tweeted directly with “False!” under Bitcoin Archive’s tweet:

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality