Giant Cryptocurrency Bank Stops Withdrawals Due To FTX Collapse!

Cryptocurrency The lending arm of investment bank Genesis Global Trading is temporarily suspending withdrawals and new loan purchases following the collapse of FTX.

The unit, known as Genesis Global Capital, serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022, according to the company’s website.

Other Units of the Crypto Money Company Will Continue to Work

Islim, acting as the broker/dealer of Genesis Global Capital, said that Genesis Trading is independently capitalized and operated separately from this credit unit. Islim added that Genesis’ trading and custody services continue to be fully operational.

Islim told attendees during the call that Genesis is seeking solutions for its lending unit, including finding a new source of liquidity. He noted that Genesis plans to detail its plan to customers next week.

Digital Currency Group (DCG), owner of Genesis, said on the matter today:

“Today, Genesis Global Capital, the lending unit of Genesis, made the difficult decision to temporarily suspend withdrawals and new lending. This decision bitcoin exchange was taken in response to the extreme market shock and loss of confidence in the industry caused by the FTX crash.”

Amanda Cowie, DCG vice president of communications and marketing, continued:

“This decision affects the lending business at Genesis and not Genesis’ trading or custody business. More importantly, this decision has no impact on the business activities of DCG and our other wholly-owned subsidiaries.”

*Not investment advice.

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