Genesis Capital suspends withdrawals, citing unprecedented market turmoil
Leading crypto broker, Genesis Global Capital, has announced that it is temporarily suspending redemptions and new loan originations, becoming the latest victim of the FTX collapse.
It blamed the decision to suspend redemptions on the ‘unprecedented market turmoil’ sparked by FTX’s collapse. The firm, which has $175 million on FTX has also seen “abnormal withdrawal requests” that exceeded its liquidity.
In its third-quarter report, Genesis revealed that it had $2.8bn of “active loans” as of the end of September. The suspension has now prompted concerns about Genesis and its business partners.
Shortly after Genesis made the announcement, crypto exchange Gemini announced a temporary suspension of withdrawals on the platform, as Genesis served as its lending partner for the Earn project.
The move from Genesis is in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.
Crypto exchange Gemini records $570 million in withdrawals in 24 hours
Leading cryptocurrency exchange Gemini is also suffering from the FTX contagion….
