Major potential supporter Binance declined to make the investment after cryptocurrency lending firm Genesis suspended client redemptions and stated it would look for a $1 billion emergency funding loan, according to the Wall Street Journal.
Considering a potential conflict of interest with Genesis’ business model, Binance declined the chance to invest in the lending company controlled by the Digital Currency Group, a source familiar with the situation told the Wall Street Journal.
According to the newspaper, Genesis also asked Apollo Global Management for a financial investment.
According to a claim citing a confidential document, Genesis’ problems started when Gemini, the company’s affiliated exchange, saw a withdrawal rush following the collapse of crypto exchange FTX.
Despite Binance declining to invest, Genesis is still considering all of its options and doesn’t seem to be in a rush to declare bankruptcy.