Genesis Crypto-Lending unit halts customer withdrawals
Genesis’ crypto-lending unit has announced that they are currently halting all customer withdrawals as a result of the FTX collapse.
Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse – Coindesk"Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries"— 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.
Genesis’s 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.— Genesis (@GenesisTrading) November 16, 2022
Due to the default of Three Arrows Capital (3AC), Genesis’ liquidity was negatively impacted along with the duration profiles of Genesis’ lending entity, Genesis Global Capital.
“At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market.”
Through the thread, Genesis highlights the “unprecedented market turmoil” the FTX collapse has created. This resulted in “abnormal withdrawal requests” that have since exceeded Genesis’ 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.— Genesis (@GenesisTrading) November 16, 2022
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.Source