Crypto Lender Genesis Had Sought Emergency Loan of $1 Billion From Investors

After taking the decision to temporarily suspend redemptions and new loan originations, it appears that Genesis sought an emergency loan of $1 billion from investors before telling clients it was suspending redemptions in the wake of the collapse of FTX.

The document viewed by the Wall Street Journal cites a "liquidity crunch due to certain illiquid assets on the balance sheet of Genesis". However, the firm failed to get that funding.

“There is ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity,” the document said, according to the paper.