Genesis bankruptcy filing sends Bitcoin to fresh low

Days after his credit unit was forced to stop withdrawals following the collapse of crypto exchange FTX, Genesis Global Trading has mentioned bankruptcy as a potential option as it seeks fresh capital, Bloomberg reported, citing people familiar with the matter.

This was reported by the Wall Street Journal, also citing people familiar with the matter Genesis sought funding from Binance and Apollo Global Managementand that Binance declined to invest, citing a potential conflict of interest.

The initial news sent Bitcoin (BTC) to a new two-year low of $15,480. But the price has fully recovered to where it was before the Bloomberg story came out, trading around $15,913 as of this update.

“We have no plans to file for bankruptcy in the near future,” a Genesis representative told Bloomberg. “Our goal is to resolve the current situation amicably without the need to file for bankruptcy.” Genesis continues to engage in constructive discussions with creditors.”

Genesis and CoinDesk share the same parent company, Digital Currency Group.

Read more: Bernstein says Grayscale Bitcoin Trust is protected from a failure at sister company Genesis Global

UPDATE (November 21, 2022, 23:01 UTC): Updates with the latest bitcoin price.

UPDATE (November 22, 2022, 00:32 UTC): Updates with the WSJ reported that Genesis had sought funding from Binance and Apollo Global Management, and that Binance declined to invest, citing potential conflicts of interest.

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