(Bloomberg) -- Creditors to embattled crypto brokerage Genesis are organizing with restructuring lawyers and seeking options that would keep the firm out of bankruptcy, according to people with knowledge of the situation.

One group of creditors is getting advice from law firm Proskauer Rose, while another group is working with Kirkland & Ellis, said the people, who asked not to be identified because the matter is private. Following FTX’s rapid bankruptcy, the groups are seeking to avoid a similarly chaotic and costly process for Genesis, the people added. 

“Our goal is to resolve the current situation in the lending business without the need for any bankruptcy filing,” according to a statement from a Genesis spokesperson. 

Representatives for Proskauer and K&E didn’t immediately respond to requests for comment.

The brokerage has $2.8 billion in outstanding loans on its balance sheet, with about 30% made to related parties including its parent company, Barry Silbert’s Digital Currency Group. The sudden collapse of FTX, one of the world’s largest crypto exchanges, roiled the crypto market and triggered a liquidity crunch at Genesis. A representative for DCG didn’t immediately respond to a request for comment. 

In a letter sent to clients last week and seen by Bloomberg, interim Chief Executive Officer Derar Islim said Genesis began talks with potential investors and its largest creditors and borrowers, including Gemini and DCG, on ways to boost liquidity for its lending business and address clients’ needs. The company said it hired Moelis & Co. to evaluate strategies and advance negotiations.

The company has been trying to raise at least $1 billion in fresh cash for its lending unit, but so far no deal has materialized. Some investors approached for the lifeline have balked at the interconnectedness between the entities. 

Genesis, which warned potential investors that it may need to file for bankruptcy if its efforts to raise cash fail, halted redemptions shortly after revealing on Nov. 10 that it had $175 million locked in an FTX trading account.

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