Genesis Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse – IOTW Report

Genesis Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse

CoinDesk: The lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday.

The unit, known as Genesis Global Capital, serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022, according to the company’s website.

Genesis Trading, which acts as Genesis Global Capital’s broker/dealer, is independently capitalized and operated separately from that lending unit, Islim said. He added that Genesis’ trading and custody services remain fully operational.

Islim told the participants on the call that Genesis is exploring solutions for the lending unit, including finding a source of fresh liquidity. He said Genesis intends to detail its plan to clients next week.

Genesis owner Digital Currency Group (DCG) is also the parent company of CoinDesk.

“Today Genesis Global Capital, Genesis’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion,” said Amanda Cowie, vice president of communications and marketing at DCG. more

8 Comments on Genesis Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse

  1. I want to know what happened to all that crypto money. I’ve always been told everything going through the internet is traceable. Now the government wants people to use crypto dollars? How safe would that be in light of current events!

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