The crypto lending platform of investment firm Genesis Global Trading has temporarily stopped withdrawals.
In the cryptocurrency market, the effects of the FTX collapse continue. With the collapse of FTX, which is called the second largest stock market in the world, corporate companies began to make losses. In particular, investment asset management companies faced liquidity problems. It has been suggested that FTX has ties to hundreds of companies in the crypto industry. Companies, mostly investors, sought legal ways to recover their assets. Finally, Genesis announced that the crypto lender has stopped withdrawals.
Genesis Seeks New Liquidity to Crypto Lending Platform
Known as Genesis Global Capital, the unit serves an institutional client base and had $2.8 billion in active loans as of last quarter.
It has been a busy agenda for Genesis Global Trading to stop the withdrawals of the credit arm. Interim CEO Derar Islim has announced that he is temporarily suspending redemptions and new loan purchases following the FTX collapse.
Islim stated that Genesis Global Capital and Genesis Global Trading are independent of each other. According to the CEO, Genesis Trading is independently capitalized and operated.
Also, Islim added that Genesis’ trading and custody services remain fully functional. The CEO stated that the company is looking for a new source of liquidity for its credit lending unit.
The fact that Genesis Global Capital stopped its withdrawals and began looking for new sources of liquidity was associated with the FTX collapse.
Also, cryptocurrency company Gemini’s Earn platform has stopped withdrawals as it has been affected by the Genesis lending platform.
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