According to the latest reports, CZ, the founder of the world's largest cryptocurrency exchange, is interested in purchasing the Genesis Loan Book.
After showing interest in buying FTX and later retreating, it seems that “CZ” is keen this time to obtain the loan book of Genesis, which suffers from problems following the consequences of the collapse of the FTX company.
Genesis pull service stopped:
CZ is starting to get more ideas about the state of Genesis' balance sheet as he might consider a potential bid to acquire Genesis' loan book.
In its Q3 2022 report, Genesis listed active loans of $2.8 billion.
The collapse of FTX dealt a severe blow to the cryptocurrency industry, which has hit a number of companies this year.
Whether it is the Axie Infinity hack, the Terra LUNA disaster, the liquidation of 3AC, or the bankruptcy of Celsuis, the cryptocurrency market has seen the worst of times in 2022.
Seek to purchase Genesis Credits:
Not only is CZ interested in buying Genesis loans, but even B2C2, which is the largest market maker in the industry, has offered to buy Genesis loans.
Max Bonin, director and founder of B2C2, first tweeted about the offer as a way to mitigate the current liquidity shortage.
Genesis revealed last week that $175 million in funds locked in its FTX trading account belonged to its derivatives unit.
In order to bolster Genesis' balance sheet, DCG (the parent company) decided to inject $140 million in additional equity.
FTX Drama Ongoing:
The FTX saga has sent the market into a frenzy and there seems to be no stopping it.
Earlier, it was also reported that nearly $1 billion in customer deposits had disappeared from bankrupt cryptocurrency trading platform FTX, and Bankman allegedly used a backdoor into FTX's bookkeeping system to privately steal funds.
Due to the ongoing turmoil in the cryptocurrency market, many other companies are expected to run into trouble as well, not just Genesis.
Posted using Proof of Brain
