Genesis sought a $1 billion emergency loan from investors before informing clients that redemptions would be halted due to the failure of FTX, according to The Wall Street Journal.
According to the Journal, Genesis requested access to the credit facility by 10 a.m. Monday, citing a liquidity crisis. According to a confidential fundraising document obtained by the newspaper, the firm did not receive that funding.
As per the paper,
“There is ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity.”
Genesis reportedly wanted a bailout before it stopped allowing withdrawals this week.
According to reports, the lending platform stopped allowing withdrawals on November 16.