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”
— Drvo Alfe (@Tree_of_Alpha) Novembar 16, 2022
Genesis have issued a statement on their Twitter explaining the challenges of the past week caused by the FTX debacle.
Genesisov promptno poslovanje i trgovina derivatima i skrbništvo ostaju u potpunosti operativni. Nastavljamo da podržavamo naše klijente koji se oslanjaju na nas tokom nestabilnih tržišnih uslova da upravljamo svojim rizikom i sprovodimo svoje poslovne strategije.
— Genesis (@GenesisTrading) Novembar 16, 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.
Naš prioritet broj 1 je da služimo našim klijentima i sačuvamo njihovu imovinu. Stoga smo, uz konsultacije sa našim profesionalnim finansijskim savjetnicima i savjetnicima, donijeli tešku odluku da privremeno obustavimo otkupe i nove kredite u kreditnom poslovanju.
— Genesis (@GenesisTrading) Novembar 16, 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/