11-23-2022 icon

Genesis hires reorganization professionals as it seeks to circumvent insolvency

By Lucy Adegbe

Digital currency loan protocol Genesis Global Capital has allegedly employed a reorganization expert to guide it through its feasible alternatives for avoiding insolvency.

Reports reveal that the platform has sought reorganization assistance from Moelis and Company to examine its possibilities. Concerned parties have noted that no economic conclusion has been reached yet, however, the firm can still work its way through to avert insolvency filing, as noted in a statement by the New York Times on Tuesday.

Intriguingly, Moelis and Company was one of the advisory companies employed by Voyager Digitals when it halted in and outgoing payment transactions on July 1st to examine its tactical possibilities. 

In less than a week, Voyager Digital was reported to have signed up for insolvency, in the United States Courthouse, as a restructuring measure that would ultimately enable it to effectively render services. 

While the protocol’s delegate had explained that Genesis has no immediate intention to file for insolvency, during a Cointelegraph interview, a Monday news from Bloomberg implied otherwise

On Tuesday, Bloomberg briefed that the agitated loan protocol has over $2.8 billion hole in its financial record, and the protocol appears to need about $500 million to a billion dollars to fill in the deficit incurred from market instability.

According to Genesis Global Capital’s tweet on November 16, the protocol’s derivative exchange and guardianship services are fully operational notwithstanding its current halt on withdrawals.