Cryptocurrencies in decline. The great fall and crack of cryptocurrencies. The market fears the bankruptcy of Genesis
Sales on the cryptocurrency market do not stop. Bitcoin plunges below $16,000, hitting a new low of $15,500 on reports that crypto lender Genesis is about to file for bankruptcy, following the fate of Sam Bankman-Fried’s FTX. The currency debacle would be the basis for the suspension of customer refunds, Genesis reported, and now the company would need $1 billion to stay afloat. These days he is looking for a white knight who can provide him with the financing, but some rumors have leaked the hypothesis that, if no lender comes forward, the last solution would be to go to Chapter 11 .
However, the company has stated that it has no intention of implementing this path. “We have no intention of declaring imminent bankruptcy. Our goal is to resolve the current situation by mutual agreement without the need to file for bankruptcy,” a Genesis spokesperson said. Some journalistic sources have also revealed that the struggling firm would have sought support from Binance, exactly as FTX did, but that once again the Changpeng Zhao-led crypto leader denied the help.
Cryptocurrencies crack: See a cash balance of 1.24 billion FTX
The Delaware court case into the bankruptcy of FTX begins today, and a regulatory filing showed that the disgraced cryptocurrency exchange would have a combined cash balance with an affiliate amount of $1.24 billion. In particular, Alameda Research, closely related to FTX, and related companies would have almost $401 million, while exchanges FTX, FTX Japan $171.7 billion. These are essentially surpluses “higher than what debtors were able to show as of Wednesday, November 16,” the filing says. This could matter to the multitude of creditors who are advancing money from the company. It appeared yesterday that FTX’s top 50 clients have loans in excess of $3 billion, with two in particular each exceeding $200 million.
FTX: Sam Bankman-Fried’s parents bought real estate in the Bahamas
Court documents also show that FTX, Sam Bankman-Fried’s parents and top company executives have purchased at least 19 properties in the Bahamas in the past two years, worth nearly $121 million. Most of these were luxury houses. Based on what was learned, it would appear that the buildings were to be used by the company’s “key personnel”, but it has not yet been determined exactly who actually lived there.
However, the documents also lead to a vacation home, which has access to Old Fort Bay beach, purchased by Sam’s parents, Joseph Bankman and Barbara Fried. A spokesman for the latter would not say how the house was paid for, whether in cash, with a mortgage or through FTX, saying only that the two individuals had attempted to return the property to the company. “Since before the bankruptcy proceedings, Mr. Bankman and Ms. Fried have been trying to return the deed to the company and are awaiting further instructions,” the spokesman said, declining to elaborate.