• Genesis is looking to raise about $1 billion before bankruptcy filing becomes its last resort.
  • U.S. prosecutors have been reported to be investigating FTX months before the exchange filed for bankruptcy.
  • FTX token (FTT) continues to establish new lows with every passing day, trading at $1.251.

FTX exchange triggered one of the biggest crashes this year, and the crypto market continues to bear its aftershocks weeks later. The impact, which slightly affected Genesis Global Capital, is now facing a much bigger threat unless resolved soon. On the other hand, suspicions about FTX’s wrongdoings have emerged to have been far older than expected.

FTX causes more troubles

FTX exchange filing for bankruptcy was expected to end the crypto market crisis, but the liquidity crunch that emerged from it is hurting Genesis. As per a report from Bloomberg, the lending company is currently attempting to raise about $1 billion from investors.

Following the liquidity crisis, Genesis temporarily suspended redemptions and new loans on its platform. The collapse of Three Arrows Capital was also reported to have a hand in Genesis’ current conditions. The company also had over $175 million locked up in derivatives on the FTX exchange and was provided with an equity infusion worth about $140 million from its parent company Digital Currency Group.

Although the company is not looking to file for bankruptcy immediately and is only treating it as a last resort. Genesis was reported saying,

“Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

In addition to this, FTX’s collapse has led to the American professional basketball team Golden State Warriors facing trouble. According to Forbes, the NBA team was alleged in a lawsuit for fraudulently promoting FTX and its platform. 

Furthermore, more details about FTX’s criminal conduct have also come forward. Reportedly, the exchange was involved in an investigation by the U.S. Attorney’s Office for the Southern District of New York for months. The prosecutors were investigating Bank Secrecy Act compliance focusing on FTX’s U.S. and other arms.

The impact of these developments has led to the exchange’s native token repeatedly painting red on the charts.

FTX Token keeps the crypto market below $800 billion

FTX’s native token, FTT, has been registering red candles consistently for about a week now. The cryptocurrency has lost over 95% of its value since the crash of November 6 and is currently trading at $1.251.

FTT/USD 1-day chart

FTT/USD 1-day chart

The broader impact on the crypto space has not been kind either, as the total market capitalization fell below the $800 billion mark once again. Bitcoin price fell to its two-year lows in the last 24 hours before slightly recovering to trade at $15,845. 

The retesting of the $15,800 level might make it seem like the market has hit bottom. However, the king coin, along with other altcoins, still faces a possible sell-off due to increasing bearish momentum, which could trigger a further decline in prices.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP remains range-bound under the $0.50 resistance on Friday after news that Ripple CEO Brad Garlinghouse will have to face a trial in California regarding some statements he made in 2017. 

More Ripple News

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation.

More Bitcoin News

1Inch looks poised for downward correction

1Inch looks poised for downward correction

1inch price moves lower by 3% on Friday after being rejected by the 200-day Exponential Moving Average on Thursday. On-chain data shows a decline in Development Activity, signaling negative sentiment among 1INCH investors. 

More Cryptocurrencies News

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero’s ZRO token airdrop went live on Thursday, with a claiming mechanism called Proof of Donation. The team requires 10 cents in USDC, USDT or Ether per ZRO token with the aim to weed out manipulative Sybil entities. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. Technical indicators suggest BTC might experience a 3% correction in the near term before continuing its upward trajectory.

Read full analysis

BTC

ETH

XRP