Max Boonen Offers to Purchase Outstanding Loans from Troubled Genesis Crypto Lending

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This morning, Genesis’ crypto lending branch in New York momentarily prevented customers from getting their money back on loans totaling over $2 billion. In the meantime, B2C2 is planning to become a lender in order to capitalise on the company’s bad luck.

B2C2 has entered the race to purchase Genesis’s debts at reduced rates and has joined the competition; however, it is not yet apparent whether Genesis’s cash flow problems will be permanent.

When it became known that Genesis was having difficulty meeting its financial obligations, Max Boonen, the creator of B2C2, made an offer to purchase the company’s outstanding loans.

According to what Boonen shared with Blockworks, a potential agreement may be struck in the upcoming week, and B2C2 is searching for high-quality short-term loans for around six months.

It has been reported that Genesis has engaged in exploratory discussions with Boonen; however, there has been no information provided regarding the company’s chosen term or whether or not they would sign a contract.

Because he has not reviewed Genesis’s financials, Boonen would not discuss the specifics of a potential business transaction.

One of the few groups of people that were responsible for the creation of the cryptocurrency market was Alameda Research, which is now owned by Sam Bankman-Fried, who was once the CEO of FTX.

If Genesis had not been created, there would only be a select few producers on the spot market, such as Cumberland, Wintermute, and B2C2.

Following its success in rescuing Terra and Three Arrows Capital, Bankman-Fried asserts that it is accountable for FTX’s successful efforts to save financially troubled institutions.

In regards to a potential funding deal for Genesis, Boonen does not hold out as much hope.

Booned stressed that the actions of the organisation had nothing to do with assisting other individuals in any way. We believe that it is possible to make a profit by purchasing loans at a discount, which would also be beneficial to B2C2’s reputation.

Genesis, which is striving to stay out of the red, may immediately receive more cash by selling assets to two of the top market makers in the cryptocurrency sector.

This would allow Genesis to continue its efforts to stay out of the red. According to Blockworks, Binance is also mulling over the possibility of purchasing Genesis’ debt.

Someone who is aware of the matter has stated that Genesis “appears to be attempting to avoid bankruptcy at all costs,” despite the fact that doing so would be a high-stakes bet with a significant financial investment. It was decided to protect the source’s identity so that they would feel comfortable discussing confidential business matters openly.

We requested a statement from Genesis, but they haven’t responded to our inquiry as of yet.

As long as Genesis is able to keep its head above water, the company should be able to realise at least some of the value of its assets.

Boonen stated that Genesis’s creditors would receive “pennies on the dollar” in compensation for their losses if the company actually declared bankruptcy.