Genesis Tells Clients Recovery Plan Would Take ‘Weeks Rather Than Days’
Cryptocurrency broker Genesis told its clients in a letter that the recovery plan with details on what it plans to do next is anticipated to be ready within «weeks rather than days,» suggesting that investors are unlikely to get their money back this year.
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According to the letter seen by Reuters, the troubled crypto broker is working with its owner, Digital Currency Group (DCG), to find the «most effective path to preserve client assets, strengthen our liquidity, and ultimately move our business forward.»
«We anticipate that it will take additional weeks rather than days for us to arrive at a path forward,» Genesis added.
Claims Against Genesis Rise to $1.8B
As iHodl reported earlier, Genesis hired specialists from Moelis & Company to consider restructuring options, including a potential bankruptcy. Prior to that, Genesis was seeking an emergency $1 billion funding from investors, but later lowered its target down to $500 million. It is unclear if the firm managed to raise fresh capital for the updated target at all.
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