Genesis’ crypto-lending unit has announced that they are currently halting all customer withdrawals as a result of the FTX collapse.
Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse – Coindesk
“Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries”
— Alfa Ağacı (@Tree_of_Alpha) 16 Kasım 2022
Genesis have issued a statement on their Twitter explaining the challenges of the past week caused by the FTX debacle.
Genesis'in spot ve türev ticareti ve saklama işleri tamamen faaliyete devam ediyor. Değişken piyasa koşullarında risklerini yönetmek ve iş stratejilerini uygulamak için bize güvenen müşterilerimizi desteklemeye devam ediyoruz.
— Genesis (@GenesisTrading) 16 Kasım 2022
Due to the default of Three Arrows Capital (3AC), Genesis’ liquidity was negatively impacted along with the duration profiles of Genesis’ lending entity, Genesis Global Capital.
“At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market.”
Through the thread, Genesis highlights the “unprecedented market turmoil” the FTX collapse has created. This resulted in “abnormal withdrawal requests” that have since exceeded Genesis’ current liquidity.
1 numaralı önceliğimiz müşterilerimize hizmet etmek ve varlıklarını korumaktır. Bu nedenle, profesyonel finansal danışmanlarımız ve danışmanımızla istişare ederek, borç verme işinde itfaları ve yeni kredi oluşumlarını geçici olarak askıya alma gibi zor bir karar aldık.
— Genesis (@GenesisTrading) 16 Kasım 2022
Genesis has since hired “the best advisors in the industry to explore all possible options” and has announced they will be delivering a plan for the lending business next week.
Source: https://cryptoslate.com/genesis-crypto-lending-unit-halts-customer-withdrawals/