Crypto lender Genesis hires restructuring adviser - New York Times

November 22, 2022 3:22 PM EST

FILE PHOTO: Representations of cryptocurrencies plunge into water in this illustration taken, May 23, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

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(Reuters) - Troubled cryptocurrency lender Genesis Global Capital has hired investment bank Moelis & Company to explore options including a potential bankruptcy, the New York Times reported on Tuesday citing three people familiar with the matter.

The company has not yet made a final decision on bankruptcy and it was still possible to be averted, the NYT added.

Genesis did not immediately respond to a Reuters request for comment on the matter.

Earlier this month, crypto exchange FTX filed for U.S. bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

The collapse of FTX has sparked worries of a contagion effect on other firms already reeling from dampened crypto market this year.

On Monday, Genesis had asserted it had no plans to file bankruptcy imminently, days after it suspended customer redemptions citing the collapse of FTX.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)

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