On Monday 21st November 2022, WhaleChart tweeted that Genesis received over $1B worth of FTT from Alameda in the last 3 months claiming his source was from authentic research.
RESEARCH: Genesis received over $1B worth of $FTT from Alameda, FTX in last 3 months.
In FTT 🤡
— whalechart (@WhaleChart) November 21, 2022
Genesis Capital, an affiliate of Genesis Trading is a well-grounded company that offers institutions the ability to borrow bitcoin, Ethereum, litecoin, and other digital currencies in large sizes over fixed terms. However, despite its high-profile status, Genesis has become the latest victim of the cryptovirus triggered by the meltdown of Sam Bankman-Fried’s business, FTX earlier this month.
An analysis of the Arkham Intelligence dashboard, CryptoSlate, shows that the popular crypto lender, Genesis received millions in FTT tokens from bankrupt crypto firms Alameda Research and FTX over the past year
To break it down further, Genesis received $932.56 million worth of FTT tokens from FTX within the last three months, while it received $141.1 million worth of struggling FTT tokens from Alameda Research during the same period.
Following the Failing of FTX, Genesis trading assets went from a peak level of being worth almost $5 billion to being worth roughly $238 million.
The crypto lender recently halted all customer withdrawals due to the FTX’s collapse. They stated that the incident resulted in “abnormal withdrawal requests” that exceeded its liquidity.
Genesis proceeded to try to raise a $1 billion loan from investors to avoid a liquidity crunch just before freezing withdrawals and also approached private equity firm Apollo Global Management for capital assistance.
Meanwhile, reports revealed that the lender had failed to obtain the emergency loan from investors. The extent of FTX’s collapse on Genesis business would result in quite a massive negative impact, considering the value of trading assets under its possession.
With all the woes piling up, Genesis yesterday warned that it may be facing bankruptcy; however, the firm’s spokesperson told Decrypt there were no immediate plans for such a move as their goal is to resolve the current situation smoothly without the need for any bankruptcy filing.
