With the hiring of Moelis, Genesis will consider bankruptcy options. Genesis Global Capital, a cryptocurrency lending company has hired a restructuring attorney named Moelis & Company to explore all possibilities, including but not limited to bankruptcy.
Genesis hired Moelis & Company
According to the New York Times of November 22, the company hired the financial firm Moelis & Company to explore options, however, people with knowledge of the situation indicated that no financial decision has been made and that it will – always possible for the company to block. by declaring bankruptcy. It is important to note that Moelis & Company is one of Voyager Digital’s operating companies after it stopped accepting deposits and withdrawals on July 1 to investigate another system. Voyager Digital filed for Chapter 11 bankruptcy days later in court for the Southern District of New York as part of a restructuring plan that will gradually restore quality customer service.
Unpaid debt on the balance sheet
Genesis is reportedly looking to raise $500 million to $1 billion from the company to settle the gap that later caused extraordinary market turmoil and the delisting of cryptocurrency exchange FTX.
In a study released on Nov. 22, it was discovered that the troubled lending company has $2.8 billion in outstanding debt on its balance sheet, with more than 30% of those loans going to third parties, including its parent Digital Currency Group and its subsidiary and lender, Genesis Global Trading. Digital Currency Group owes $575 million to Genesis Global Capital, according to a recent filing with its CEO, Barry Silbert.