According to a January 4 statement, Genesis interim CEO Derar Islim appealed for more time to address the financial issues facing the company’s lending arm.
Islim stated that the firm is currently involved in “a very complex process that will take some additional time” and remains committed to finding a solution.
Islim also noted that Genesis is working with advisors, including Digital Currency Group (DCG) and advisors appointed by various client groups, to evaluate options to preserve client assets and move the business forward.
Genesis suspended withdrawals in November 2022 following the collapse of FTX, which affected clients of Gemini Earn with $900 million on the platform.
The company, along with its parent company DCG, has faced increased scrutiny over its financial health and speculation that it may have to file for bankruptcy.
Three Gemini Earn users have also filed a class action lawsuit against the firm. In the meantime, Gemini co-founder Cameron Winklevoss has given DCG CEO Barry Silbert a January 8 deadline to resolve the issues and accused him of using “stall tactics.”