Home » Genesis lending unit halts withdrawals in aftermath of FTX collapse

Genesis lending unit halts withdrawals in aftermath of FTX collapse

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For illustration purposes, you will see the FTX logo on a crypto coin on a $100 bill. FTX has filed for bankruptcy in the US and is seeking court protection as it seeks a way to return money to its users.

Jonathan Lah | Null Photo | Getty Images

In the latest Fallout from Rapid collapse of FTX Last week, the lending arm of crypto investment bank Genesis Global Trading announced that it was suspending the origination and redemption of new loans. thread of tweets Wednesday.

The bank’s lending arm serves the institutional investor base and is known as Genesis Global Capital. At the end of the third quarter, we had over $2.8 billion in total active loans. According to the company’s website.

“We are aware of how difficult this past week has been in the wake of FTX news. We are focused,” said Genesis. wrote in a tweet.

“Our top priority is to serve our clients and protect their assets.”

Acting as a broker/dealer for Genesis Global Capital, Genesis Trading is independently capitalized and operates separately from its lending arm, interim CEO Deller Islam told clients by phone on Wednesday. rice field. CoinDeskHe reportedly added that Genesis’ trading and custody services remain fully operational.

A Genesis spokesperson did not immediately respond to a request for comment.

The decision reflects signs of contagion outside of BlockFi, which is reportedly preparing to file for bankruptcy. wall street journalThe cryptocurrency lender has already stopped withdrawing customer deposits and has admitted to having “significant exposure” to the now-bankrupt crypto exchange FTX and its sister trading company Alameda Research.

The WSJ, citing people familiar with the matter, added that BlockFi also plans to lay off more employees to prepare for a potential Chapter 11 filing, but the company has retained most of its assets. didn’t say it was managed by FTX.

A BlockFi representative did not immediately respond to a request for comment.

Sam Bankman-Fried’s Cryptocurrency Exchange FTX Filed Chapter 11 Bankruptcy Protection According to one person, last week in the United States Company statement posted on TwitterBankman-Fried also stepped down as CEO and was succeeded by John J. Ray III.

About 130 affiliates are participating in the process, including Bankman-Fried’s cryptocurrency trading firm, Alameda Research, and its U.S. subsidiary, FTX.us.

in a few daysliquidity dried up, customers demanded withdrawals, rival exchange Binance non-binding agreement to buy a company. FTX Founder Bankman-Fried Admitted Last week he said he was “bored”.

FTX May Have Over 1 Million Creditors, According To Update bankruptcy filing tuesdayhinting at the huge impact of its collapse on crypto traders.

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