Binance may finally reach out to Genesis Trading

Binance continues to portray itself as the industry’s next savior as it seeks to reach out to struggling businesses.

Contrary to what was announced, Binance could help Genesis

The situation certainly doesn’t seem to be getting any better for Genesis. The lending company, currently in the process of restructuring to avoid bankruptcy, appears to be at rock bottom despite the many efforts made by management. While it refuses to stop its activity and seeks to take refuge behind a fundraiser, the involvement of the new crypto giant could be a game changer.

In an interview with Bloomberg, Binance CEO Changpeng Zhao returned to the situation of the crypto business. According to him, if his exchange platform would have nothing to fear from the crisis, it would not be the same for Genesis. In the event of the company’s bankruptcy, however, many other actors may have to go bankrupt, especially those affected by the loans provided by the latter. Among the companies most vulnerable to the situation, the names of Gemini or Greyscale have already been mentioned.

To avoid another domino effect that could deal a serious blow to the industry, Binance has finally decided to reach out to Genesis. If we still do not know the terms of the rapprochement, the possibility of bringing him help has been confirmed by CZ.

I don’t want to reveal too much, but we are in contact with almost everyone in the industry. Genesis is having problems with its liquidity, our team is in the process of supporting it. I don’t know all the details and I’m not sure yet how we will or won’t act to help him, but one thing is for sure: the Binance team is indeed involved in the matter.

Excerpts from CZ’s comments in the interview with Bloomberg

Source: Binance Twitter account

This claim contradicts old statements from Binance, which announced that it would not provide support to Genesis for conflict of interest stories. However, it could benefit from the recovery fund initiated by the exchange platform.

Sam Bankman-Fried’s empire in CZ sights?

During his interview, Changpeng Zhao also claimed that he is keeping an eye on Voyager Digital’s assets. The fallen company is still waiting for a player to buy back its cryptocurrencies, especially since the original buyer, FTX, went bankrupt. It may be that Binance takes over the savior seat left vacant by Sam Bankman-Fried and flies to the aid of creditors who are patiently hoping for their refunds. More so, the assets held by FTX could also be redeemed in the process.

Binance.US will make another offer for Voyager as FTX is no longer able to follow through on this commitment. […] Regarding the assets held by FTX, they are also of interest to us, but we will only be able to act when the company is in a liquidation period. The latter is involved in a ton of projects and we won’t take over all of them, but I certainly think that a good portion of those assets can be saved and will be a good investment for us. We will therefore make some proposals when they are available.

Excerpts from CZ’s comments in the interview with Bloomberg

The entrepreneur also confided in his idea of ​​a recovery fund, estimating that almost a billion dollars would be allocated to platforms in difficulty. This handsome sum can also be extended if necessary and should allow the industry to rebuild itself for the next six months. Binance will communicate about this during the week.

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