Just-In: Binance’s CZ might acquire Genesis Loan Book
According to reports, CZ — founder of the largest cryptocurrency exchange in the world is interested in purchasing Genesis’ loan book. After initially showing interest in buying FTX, but then withdrawing within 24 hours, Changpeng CZ’ Zhao is reported to be keen to acquire Genesis’ loan books.
Genesis Halts Withdrawal Service
According to reports, CZ may have begun looking for more information on Genesis’ balance sheet in order to consider a possible bid for Genesis’ loan assets. Genesis listed $2.8 billion in active loans in its Q3 2022 report.
Read more: Genesis suspends customer withdrawals in wake of FTX collapse
Zhao’s tweets last week sparked a bank run that brought down FTX. FTX had a huge target on its back after it was discovered that its balance sheets were laughable and possibly fraudulent.
The collapse of FTX has been a devastating blow to the cryptocurrency market, already hard hit by a number corporate failures this year. The crypto market has experienced some of the worst times since 2022, whether it is the Terra LUNA hack, Terra LUNA bankruptcy, 3AC liquidation or Celsius bankruptcy.
B2C2 Loans Available From Genesis
Not only CZ, but also B2C2, which is the largest market maker in the sector, has offered to buy loans from the crypto financial company Genesis. Max Boonen (director and founder of B2C2) first tweeted about the offer to “alleviate the existing liquidity shortfall.”
I didn’t have Genesis on the bingo card. Wow. This leaves very few players in OTC market …@B2C2Group wishing to offer loans from @GenesisTrading to help alleviate the current liquidity shortage.
— Max Boonen (@maxboonen) November 16, 2022
Genesis disclosed last week that $175 million in locked funds in the FTX trading account belonged in part to its derivatives unit. DCG (parent company), decided to inject $140million in additional shares to help Genesis’ balance sheet.
The ongoing FTX Drama
The FTX saga seems to be causing market panic and there is no stopping it. It was also reported earlier that nearly $1 billion in client deposits went missing from the bankrupt cryptocurrency trading platform FTX. Bankman-Fried is alleged to have used a “backdoor” in FTX’s accounting system to siphon off private funds.
Due to the turmoil in the crypto market, Genesis and many other organizations will be facing the heat.
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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.