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Seeking Alpha

Genesis crypto lending arm hires restructuring advisor Moelis - report

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Just days after it suspended customer withdrawals, Genesis Global Capital, the cryptocurrency lending business of crypto brokerage Genesis, hired investment banking advisory firm Moelis & Company ( NYSE: MC ) to explore how it can shore up its liquidity, CoinDesk reported Wednesday, citing a memo sent to customers. "We've begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG," Genesis interim CEO Derar Islim said in the memo, as quoted by CoinDesk. "We expect to expand these conversations in the coming days." He also pointed out that Genesis's trading and custody divisions remained fully operational. Given its exposure to imploded crypto exchange FTX, Genesis has been scrambling to raise cash from potential investors. Its derivatives arm, of note, had ~$175M in losses from FTX. In turn, Genesis Global Capital was forced to halt redemptions and new loan originations last week. Genesis did not immediately respond to Seeking Alpha's request for comment. Previously, (Nov. 17) Genesis had sought $1B emergency loan before pausing withdrawals .
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