TechFlow news — Crypto KOL Autism Capital posted that there are market rumors suggesting Genesis, a crypto trading and lending institution, may have solvency issues. The company is scheduled to hold a call with creditors at 8:00 AM Eastern Time on November 17 to explain the situation. If true, Genesis might sell ETHE and GBTC shares to repay lenders.
"We know Grayscale controls GBTC and ETHE, not Genesis. DCG (Genesis and Grayscale's parent company) is supporting Genesis. If there are solvency concerns large enough, it may become necessary to sell the trusts," said Autism Capital.
Earlier reports indicated that Genesis stated its derivatives division had $175 million in locked funds within FTX trading accounts. Subsequently, Genesis announced receiving a $140 million equity injection from its parent company, Digital Currency Group (DCG), aimed at strengthening its balance sheet and consolidating its position in the crypto market.Original link
