Genesis Global Capital confirmed that it has hired investment bank Moelis & Co. to explore how to shore up its crypto-lending business' liquidity and address clients' needs, days after halting withdrawals.
"We've begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG," Genesis interim CEO Derar Islim said in a memo sent to customers. "We expect to expand these conversations in the coming days," noting that Moelis was hired to fast-track these talks.
Genesis had spent much of November scrambling to raise fresh capital or reach a deal with creditors thanks to its exposure to collapsed crypto exchange FTX. The company's institutional lending unit last week was forced to suspend redemptions and new loan originations. Genesis also previously disclosed that its derivatives unit had about $175 million in locked funds in its FTX trading account. As a result, parent company Digital Currency Group (DCG) opted to strengthen Genesis’ balance sheet with an equity infusion of $140 million.
On Tuesday, DCG founder and CEO Barry Silbert disclosed that DCG had a roughly $575 million liability to Genesis Global Capital, which is due in May 2023.
Islim noted that other Genesis divisions remain fully operational, including its trading arm and custody businesses.
The hiring of investment bank Moelis & Co. to explore options was first reported by the New York Times.
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