Genesis crypto brokerage struggles to avoid bankruptcy

Genesis, the embattled cryptocurrency brokerage, is pulling out all the stops and exploring all options to keep the bankruptcy lawyers at bay.

Creditors are banding together with liquidation and restructuring lawyers to keep the firm afloat.

On November 16, the crypto lending platform suspended withdrawals.

Creditors are seeking advice from various legal firms, according to a Bloomberg report citing anonymous sources.

The creditor groups are attempting to avoid the situation that led to the demise of FTX International earlier this month.

According to the report, Genesis has approximately $2.8 billion in outstanding loans on its balance sheet.

Almost one-third of that amount was paid to related entities, including the parent company, Digital Currency Group (DCG).

Its problems are caused by outstanding loans with Alameda. It also had large loans from the now-defunct crypto hedge fund Three Arrows Capital (3AC).

Over the weekend, DCG disclosed a $2 billion liability, the majority of which is owed to Genesis.