The Wall Street Journal reported on Thursday that cryptocurrency lender Genesis was seeking a $1 billion emergency loan from investors before suspending withdrawals on its website, citing a confidential fundraising document. According to the document obtained by the Journal, Genesis is experiencing a “liquidity crunch due to certain illiquid assets on its balance sheet.” Genesis Global Capital halted customer redemptions in its lending business on Wednesday, citing the sudden failure of Sam Bankman-crypto Fried’s exchange FTX. “Genesis had been exploring all possible options amidst the liquidity crunch caused by the FTX news,” the company said in an emailed statement to Reuters, adding that it decided to suspend redemptions after considering a number of alternatives.
