Crypto loan firm Genesis said it needed more time to find solutions to the problems.
In a statement to its customers, the company emphasized that the work continues.
Genesis Needs Time
The temporary CEO of the company, Derar İslim, used the following statements in the letter he sent to customers:
“While we are determined to act as quickly as possible, this is a complex process that will take a little more time. We believe we can reach a solution”
He added that the company’s derivatives and spot trading units are fully operational, as well as refining plans for client offerings that include cost reduction and efficiency.
Genesis Global Capital, Genesis Trading’s lending platform, was forced to halt withdrawals and new loan originations following the collapse of FTX. At the same time, it was announced that if the problems could not be resolved, bankruptcy proceedings could be initiated. The company announced last month that it could take weeks to find a solution.
Referring to Genesis’ parent company, Digital Currency Group, Islim said:
“We continue to work collaboratively with consultants appointed by DCG and various client groups to evaluate options for retaining client assets and continuing business”
DCG is having problems with several companies, notably Gemini, whose Earn program has been frozen since November. Gemini co-founder Cameron Winklevoss recently sent a letter to DCG president Barry Silbert, also on Twitter, accusing Genesis of using “malicious distraction tactics”.