In an effort to prevent a possible bankruptcy filing, cryptocurrency lending platform Genesis has informed its customers that its withdrawal freeze is likely to last “additional weeks,” as reported by Cointelegraph.
Derar Islim, the company’s interim CEO who took over temporarily in August, wrote to customers on December 7 and stated that it would take weeks to come up with a recovery strategy that could allow withdrawals to resume. Genesis shared this letter with Cointelegraph.
According to the letter, Genesis is “evaluating the most effective path to preserve client assets, strengthen our liquidity, and ultimately move our business forward” while “working in consultation with highly experienced advisors.”
The letter also stated that “all other Genesis entities remain fully operational.”
The crypto lender, which had reportedly failed to make up a $1 billion balance sheet shortfall, denied plans to declare bankruptcy on Nov. 21.
On Nov. 22, shortly after, Genesis announced that the company had employed investment bank Moelis & Co. for restructuring services in order to avoid filing for Chapter 11.
Genesis reiterated in the letter its “commitment to being as transparent as possible” with those who will be impacted and promised to keep customers updated on “meaningful developments, including any updates on timing.”
(With insights from Cointelegraph)