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Genesisā crypto-lending unit has announced that they are currently halting all customer withdrawals as a result of the FTX collapse.
Genesisā Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse ā Coindesk
"Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries"
ā Tree of Alpha (@Tree_of_Alpha) November 16, 2022
Genesis have issued a statement on their Twitter explaining the challenges of the past week caused by the FTX debacle.
Genesisās spot and derivatives trading and custody businesses remain fully operational. We continue to support our clients who rely on us during volatile market conditions to manage their risk and execute on their business strategies.
ā Genesis (@GenesisTrading) November 16, 2022
Due to the default of Three Arrows Capital (3AC), Genesisā liquidity was negatively impacted along with the duration profiles of Genesisā lending entity, Genesis Global Capital.
āAt Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market.ā
Through the thread, Genesis highlights the āunprecedented market turmoilā the FTX collapse has created. This resulted in āabnormal withdrawal requestsā that have since exceeded Genesisā current liquidity.
Our #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.
ā Genesis (@GenesisTrading) November 16, 2022
Genesis has since hired āthe best advisors in the industry to explore all possible optionsā and has announced they will be delivering a plan for the lending business next week.
The post Genesis Crypto-Lending unit halts customer withdrawals appeared first on CryptoSlate.
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