In what it hails as an effort to be transparent, Digital Currency Group’s market maker and lending subsidiary, Genesis Trading, revealed that its derivatives business has around $175 million worth of funds locked away in an FTX trading account.
Genesis shared the news in a Nov. 10 tweet thread, in which the firm clarified that the locked funds would “not impact our market-making activities.”
As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.
— Genesis (@GenesisTrading) November 10, 2022
Genesis also stated that they have no ongoing relationship with FTX or its sister company Alameda Research, the latter of which FTX CEO Sam Bankman-Fried has said is “also winding down trading.”
To reemphasize, Genesis has no ongoing lending relationship with FTX or Alameda.
— Genesis (@GenesisTrading) November 10, 2022
The denouncement of an ongoing relationship follows on from other businesses within the crypto industry seeking to distance themselves from the FTX fallout, with Tether, Circle, Kraken and Coinbase all having declared that they are not exposed to either of the troubled firms.
While Genesis suggested…
