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Struggling crypto lending and trading firm Genesis had applied for a $1 billion emergency loan before closing buyouts for clients earlier this week.

The details of the emergency loan requested by Genesis were share by the Wall Street Journal on Thursday, with the paper citing a confidential fundraising document saying Genesis needed the $1 billion loan by 10 a.m. last Monday.

According to the WSJ report, Genesis admitted in the document that it was experiencing a “liquidity crunch due to certain illiquid assets on its balance sheet.” He added that the company was facing “a continued run on deposits, driven primarily by retail programs and Genesis partners (i.e. Gemini Earn) and institutional clients testing liquidity.” .

Genesis failed to secure the necessary credit facility.

The report quotes a Genesis spokesperson as saying the company has explored “all possible options amid the cash crunch resulting from the FTX new.”

“After considering a number of options, we have made the difficult decision to temporarily suspend buyouts and new lending in the lending industry so that we can identify the best possible solution and outcome for clients,” said added the spokesperson.

Genesis is a major crypto trading and lending company owned by Barry Silbert’s Digital Currency Group (DCG) crypto conglomerate. Among other things, many of the biggest exchanges in the crypto industry work with Genesis on various crypto “earning” and savings programs that pay out returns to users.

The US-based exchange Gemini is among the exchanges that rely on Genesis for their Earn program.

Earlier this week, Gemini’s trading platform went offline, causing some jitters among users. But according to the exchange, the disruption was only due to a technical issue with Amazon Web Services (AWS). Gemini also emphasized in its communication this week that customer funds are “held 1:1 and available for withdrawal at any time.”

Among the companies that have said they have no exposure to Genesis is major global exchange Binance, which said this week that it uses its own nodes for on-chain staking “whenever possible”.

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