Genesis Sought a $1 Billion Emergency Loan Before Halting Withdrawals

Crypto lender Genesis was reportedly seeking a bailout of up to $1 billion on Monday.

Barry Silbert with a red police siren on his head is sitting in a black cap full of dollars

In the latest spread of the FTX implosion, crypto lender Genesis was reportedly seeking a bailout of up to $1 billion on Monday, November 14th, before suspending withdrawals this week.

Genesis Sought $1 Billion Bailout

On Wednesday, November 16th, Genesis Global Capital became the latest victim of the FTX collapse. The firm announced that it has suspended redemptions and new loan originations due to its exposure to FTX. 

However, it has been revealed that the lending arm of crypto investment bank Genesis sought a bailout of a $1 billion emergency loan to recoup enough liquidity to meet the high redemption requests.


Genesis cited an “ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn)”. However, the lender failed to get the loan and proceeded to announce a withdrawal suspension two days later.

Genesis in Positive Talks to Raise Funds

Despite halting all customer withdrawals on the 16th, a Genesis spokeswoman told the Wall Street Journal that the confidential document was no longer current.


She noted that Genesis is now having “very positive conversations” with potential investors to recoup liquidity. The same sentiment has been echoed by its partner, Gemini, which said they are working to restore withdrawals.

On the Flipside

  • The FTX fallout compounds the loan problem at Genesis after it suffered a $2.4 billion loan defect issued to the bankrupt crypto hedge fund, Three Arrows Capital. 

Why You Should Care

The troubles at Genesis stem from its exposure to the bankrupt FTX and Alameda Research, as well as the illiquid assets reportedly on its balance sheet.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia