Cryptocurrency lending firm Genesis has refuted hypothesis that it’s planning an “imminent” chapter submitting ought to it fail to cowl a $1 billion shortfall brought on by the autumn of crypto trade FTX.

The agency has reportedly confronted difficulties elevating cash for its lending unit and instructed buyers it must file for chapter, in response to a Nov. 21 Bloomberg report citing folks accustomed to the matter.

A spokesperson for Genesis instructed Cointelegraph that there have been no plans to file for chapter “imminently” and that it continued to have “constructive” discussions with collectors. 

“We now have no plans to file chapter imminently. Our aim is to resolve the present state of affairs consensually with out the necessity for any chapter submitting. Genesis continues to have constructive conversations with collectors.”

On Nov. 16, Genesis introduced it had briefly suspended withdrawals citing “unprecedented market turmoil” after FTX’s collapse. The corporate beforehand revealed on Nov. 10 it had round $175 million price of funds caught in an FTX buying and selling account.

Associated: The FTX contagion: Which firms had been affected by the FTX collapse?

Reviews have additionally prompt that crypto trade Binance had been in talks to doubtlessly bail out the Digital Forex Group-owned lender, however sources quoted in a Nov. 21 report from The Wall Avenue Journal claimed Binance had walked away from the deal because the enterprise might create a battle of curiosity.

Cointelegraph contacted Binance for clarification on the matter however didn’t instantly obtain a response.