Binance declined the offer, citing a possible conflict of interest with Genesis' business model.
The Wall Street Journal first revealed that after the crypto lending firm suspended customer redemptions and indicated that it would seek a $1 billion emergency cash loan, significant potential backer Binance said no to the investment.
Genesis Global Capital, Genesis Trading's lending division, temporarily suspended redemptions and new loan originations in the aftermath of FTX's recent collapse and the earlier implosion of Three Arrows Capital, triggering yet another wave of reactions from crypto players with whom it did business.
According to a source familiar with the situation, Binance declined the chance to invest in the lending firm owned by the Digital Currency Group due to a possible conflict of interest with the business model.
Genesis also sought funding from Apollo Global Management. A report citing a confidential document, its problems began after a withdrawal run at the firm's affiliated exchange, Gemini, took place in the aftermath of the collapse of crypto exchange FTX.
Despite Binance's refusal to invest, Genesis appears to be weighing all of its options and appears to be in no hurry to file for bankruptcy.
"We have no immediate plans to declare bankruptcy. Our objective is to resolve the current situation amicably without the need for bankruptcy. The platform remains to have constructive conversations with creditors," a Genesis spokesperson said earlier in an email to The Block.
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