Genesis sought an emergency loan of $1 billion from investors before telling clients it was suspending redemptions in the wake of the collapse of FTX, The Wall Street Journal reported.
Genesis sought access to the credit facility by 10 a.m. Monday, citing a liquidity crunch, according to the Journal. The firm failed to get that funding, according to a confidential fundraising document viewed by the newspaper.
“There is ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity,” the document said, according to the paper.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.