Crypto Lender Genesis Halts Operations Due To FTX Impact


According to an official announcement, Crypto lending firm Genesis is halting new withdrawal requests from its customers. The firm is a victim of the collapse of the crypto exchange FTX and is one of the many affected by bankruptcy protection filing in the United States. 

The crypto lending firm Genesis stated the following about their operation and hinted at their next steps: 

Win an all-expenses-paid VIP trip to the FIFA World Cup and $30,000 in exclusive prizes with Punt Casino – the Road to Qatar awaits!
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market environment.

The collapse of FTX took the crypto market by surprise. The company’s former CEO, Sam Bankman-Fried, was a prominent figure in the industry, mingling with high-ranking government officials, celebrities, and regulators. Behind the scenes, Bankman-Fried was leading a house of cards. 

How To Get Free Crypto  

BTC’s price crashed on the daily chart following FTX and Genesis halting operations. Source: BTCUSDT Tradingview

Genesis Scrambles To Mitigate Effects Of FTX Collapse

The fallout of its implosion is still rippling across the nascent industry; this has been reflected in the crypto market’s value and in the several companies with FTX backing that lack clear direction about their future. 

These sectors include their financial derivative and spot trading products. In this context, Genesis claims that there are divisions within the company that remains operational. The company stated: 

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

We continue to support our clients who rely on us during volatile market conditions to manage their risk and execute on their business strategies.

In addition, Genesis’ broker, Genesis Global Trading is allegedly unaffected by recent events and operating “separate from all other Genesis entities.” It is the second time the company and its division have been affected by contagion this year. 

The crypto hedge fund Three Arrows Capital (3AC) collapsed earlier this year. The implosion of this entity affected Genesis’ lending entity and negatively impacted its liquidity profile. 

Coinbase Banner  

The company was cleaning up its book when FTX and its trading arm Alameda Research unexpectedly filed for bankruptcy. The crypto lending firm stated: 

FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity. Our #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.

The company claims to be working with experts to provide customers with a solution that might include “sourcing new liquidity.” The company will present a plan next week, according to the announcement. 

Digital Currency Group (DGC), the parent company of major companies in the nascent sector, including news outlet CoinDesk, Grayscale, and others, made a separate announcement. The company claims that the FTX debacle has not impacted its business operations. 

Go to Source
Author: Reynaldo Marquez

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.