Genesis Suspends Crypto Credit Platform Withdrawals: FTX Contagion Spreads

Genesis, a crypto investment firm affiliated with Digital Currency Group, reported that the company has suspended withdrawals of its $2.8 billion crypto lending platform.

According to Bloomberg’s November 16 report, the company’s CEO Derar Islam the company’s crypto lending platform after FTX bankruptcy new loan issuance and redemption transactions announced its temporary suspension. The situation in the corporate loan platform will not affect the trading part also reported.

CEO statements for Genesis’ crypto lending platform, including finding a new source of liquidity searching for solutions told. Islam said he expects the company’s plan to be detailed next week.

Islam argued that the FTX bankruptcy led to withdrawal requests that exceeded Genesis’ current liquidity. The company has recently had about approx. $175 million reported that the fund was stranded. On top of that, the parent company Digital Currency Groupto Genesis 140 million dollars He found it appropriate to make a liquidity injection.

Amanda Cowie, DGC Vice President of Communications and Marketingcaused by the credit platform FTX bankruptcy market volatility and loss of confidence stated that it was suspended due to effects arising in response.

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